Nasdaq To Launch China Equities Index
CHNX.O … Chinks… Whoever thought that one up should be whipped?
The Nasdaq Stock Market Inc. 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.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.
