Nasdaq plans to launch China equities index
LOS ANGELES (Reuters) - The Nasdaq Stock Market Inc. (NDAQ.O) said on Tuesday it will introduce the Nasdaq China Index CHNX.O to track the performance of the largest Chinese companies whose securities are listed and actively traded in the United States.
Nasdaq said it will begin disseminating the index, with 30 companies, during the second quarter of 2007.
"China is on the verge of becoming the world's fourth largest economy," said John Jacobs, executive vice president of the Nasdaq.
Nasdaq Chief Executive Bob Greifeld, along with the U.S. ambassador to China and executives of 40 Chinese firms listed on the Nasdaq, rang the opening bell of Tuesday's trading from Beijing.
Afterward he said that expected reforms to U.S. securities laws on accounting would make it easier for Chinese companies to list in the United States.
Greifeld also said the fact that the United States was considering accepting international financial reporting standards would help encourage listings.
The Nasdaq China Index will be calculated using a modified market capitalization methodology. Companies headquartered in China, including Hong Kong, which are listed on Nasdaq, the New York Stock Exchange or the American Stock Exchange are eligible for inclusion.
The stocks must also have a market capitalization of $200 million, an average daily U.S. trading volume of 100,000 shares, and a price of $3 a share as a minimum.
