SEB AG, a part of the SEB Group, has created a retail investment certificate that tracks the FTSE/Xinhua China 25 Index. The SEB ChinaBenefitCertificate aims to give investors across Europe access to liquid companies in the Chinese market, which is one of the fastest-growing in the world.
The SEB ChinaBenefitCertificate offers a guaranteed 15% bonus as long as the index does not lose 40% or more. Investors can subscribe to the 5-year certificate until 20 January 2004.
The FTSE/Xinhua China 25 Index includes the largest and most liquid B and H share companies available to international investors in China. It is calculated by FTSE/Xinhua Index, a joint venture between FTSE Group and Xinhua Financial News, a financial services specialist in China.
FTSE/Xinhua Index (FXI) is the leading index provider for both domestic and international investors with an interest in the China market. Launched over two years ago, FTSE/Xinhua China 25 Index offers a completely transparent index design which meets the standards expected by international investors today, and is used as the basis of many investment products by both domestic Chinese and international investors.
“We know that there is a healthy demand for investment products tracking the Chinese market and are certain that the FXI China 25 is an excellent basis for our new product,” says William Paus, head of Trading & Capital Markets, SEB Merchant Banking in Germany. “We created it so that retail investors across Europe could access the above-average growth potential that China’s exciting market offers.”
Peter de Graaf, Managing Director for FTSE Europe, added that “European interest in the China market is growing all the time among the institutional and retail investment communities. The FTSE/Xinhua indices are renowned for objectivity and accuracy, and it is great news that SEB has chosen to use the FXI China 25 as the basis of the SEB ChinaBenefitCertificate.”