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Technology Stocks : Softbank Investment International (HK0648) -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (312)	3/19/2000 9:18:00 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 615

This is not SII, but could have impact -- MSCI adds HK red chips from China to its China Free Index Morgan Stanley Capital International is adding Hong Kong listed companies from mainland China to its China Free Index on May 31. This would increase China's weighting in the widely watched index, one often used to measure fund managers performance. Among the red-chips added to the list, was China Telecom, Asia's third largest telephone company by market value; whose inclusion has been widely anticipated. Fifteen red-chips will be added to the index, while 22 China-listed stocks will be dropped, bringing the index to 30 stocks from 37. In terms of global investment, this change marks the coming of age for China. This is because the inclusion of larger companies into the China Free Index will see China's weighting in East Asia rise to 9.6 percent from 0.6 percent according to the MSCI indices on par with Singapore. Hong Kong's weighting falls to 28.1 percent from 37.1 percent. Under the revised definition, the companies, known as 'red chips', must be incorporated and traded in Hong Kong, and have Chinese government bodies as their ultimate controlling shareholders. This wider criterion allows for a better representation of mainland China investments available for foreign investors Of the 15 stocks being added to the china free index, the two largest are China Telecom, and computer hardware maker Legend Holdings. China Telecom's weighting in the index will be 0.4 times it market capitalization, because of its small public float, while Legend Holding's weighting will be 0.8 percent. All other stocks will be fully weighted. asia.biz.yahoo.com