Hong Kong, 13 December 2000. Hong Kong Futures Exchange (HKFE), a wholly owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), and MSCI, a leading provider of global indices and benchmark related products, today announced that the MSCI China Free Index^SM has been licensed for use by the HKEx Derivatives Market. The licence permits HKEx to develop futures and options contracts based on the MSCI China Free Index.

The MSCI China Free Index represents the universe of opportunities for investment in the China equities market available to non-domestic investors. The index currently contains 31 stocks and has a market capitalisation of USD 76.7 billion, as of 23 November 2000.

HKEx products based on the MSCI China Free Index are expected to be introduced in 2001 subject to approval by the Securities and Futures Commission of Hong Kong.

Frederick Grede, Chief Operating Officer of HKEx and Chief Executive of HKFE, said: "This agreement enables us to develop products with growth potential. We think there would be institutional and retail interest in MSCI China Free Index Futures and Options here in Hong Kong and internationally."

Commenting today, Henry Fernandez, President & CEO of MSCI said: "MSCI indices are the most widely used in the world and are particularly popular in the Asia Pacific region. We are delighted that financial products based on the MSCI China Free Index will be developed to help meet the growing need for investment products on the China market."