Established in the second half of 2000, Xinhua FTSE Index Limited (XFI) is a joint venture company combining the expertise in international indexing of FTSE Group (www.ftse.com) with the local Chinese market knowledge and data capabilities of Xinhua Finance. The methodology for XFI index calculation follows standards adopted by FTSE, encompassing independent committee governance, liquidity screening, free float adjustment, and ICB-standard industry classification, ensuring the investability and trackability of our indices. XFI benchmark and tradable index constituents are reviewed and approved by the XFI Index Committee, which adheres to a transparent set of Ground Rules to uphold index integrity. XFI benchmark indices, known for their market representiveness, provide a standard against which fund performance can be measured. XFI tradable indices, designed for optimal liquidity, are used as a basis for index tracking products, derivative trading instruments, and over-the-counter (OTC) products.
XFI indices cover a wide spectrum of asset classes and Chinese share types to suit any domestic or international mandate. The composite index covering both Shenzhen and Shanghai-listed equity and bond constituents and the International series covering B Shares, H Shares and red chips were both the first of their kinds in the world. Among the XFI Index Family are indices constructed according to market cap, growth and value factors, sector, province, yield, and industry-specific criteria (for insurance). A testament to their representativeness, tradability, and methodological rigor, XFI indices have been tied to China's first ever index fund, umbrella fund, and core-satellite fund, as well as the US's largest China-related ETF.