NASDAQ to introduce China index
5 April 2007
The NASDAQ stock exchange is to launch an index that will track the performance of the largest US-listed Chinese companies, the Financial Times reported. NASDAQ said the index will be introduced in the second quarter, starting with 30 companies with a combined market capitalization of more than US$600 billion. It is intended to serve as a benchmark of company performance and allow greater transparency. NASDAQ and rival the New York Stock Exchange have lost out in the battle for Chinese listings in recent years as companies are put off by the difficulties involved in complying with the Sarbanes-Oxley law. It is hoped that recent changes in the regulations - which make it easier to de-list from US exchanges - will encourage more companies to list in the first place.