FTSE, Xinhua launch China index

Yesterday (Thursday) FTSE and Xinhua Financial Network’s joint venture rolled out the China 25 index - a new index of red chips, H, B and N shares for foreign investors and traders, which follows FTSE’s guidelines of adjusting for a free float and capping any one stock’s weighting at 10%. It directly takes on MSCI (the Morgan Stanley Capital International indices), whose China country index does not have that cap, which means a handful of giant stocks such as China Mobile can comprise…