Nasdaq Stock Market, Inc. announced plans to introduce the
Nasdaq China Index?in Beijing?Wednesday.
The index is designed to track the performance of Chinese
companies whose securities are listed and actively traded in the
US, according to the company.
Nasdaq will introduce the index in the second quarter of 2007,
said Nasdaq CEO Robert Greifeld without giving a specific date.
The Index will initially be comprised of 30 Chinese companies
with a combined market capitalization of more than US$600 billion
that are listed on Nasdaq, the New York Stock Exchange, or the
American Stock Exchange, Greifeld said.
"This Index will enable investors worldwide to follow companies
in a broad range of industries," said Nasdaq Executive Vice
President John Jacobs.
"China is on the verge of becoming the world's fourth-largest
economy, a testament to the innovative companies that are included
in this essential investment index," he said.
The Nasdaq China Index will be calculated using a modified
market capitalization methodology. Companies headquartered in
China, inclusive of Hong Kong, which are listed on Nasdaq, the New
York Stock Exchange, or the American Stock Exchange are eligible
for the Index.
To be eligible, stocks must also have a minimum worldwide market
capitalization of 200 million dollars, a minimum average daily US
trading volume of 100,000 shares, and a minimum price of US$3 per
share.
With a total of 40 Chinese companies now listed on Nasdaq,
representatives of the companies met with Greifeld in Beijing on
Tuesday to celebrate.
Nasdaq, the largest electronic screen-based equity securities
market in the United States, lists about 3,200 companies, including
Microsoft, Dell and Yahoo. The market value of these companies
exceeds 4,000 billion US dollars.
(Xinhua News Agency April 5, 2007)