In The News
CNBC Power Lunch Interview
1/14/04
Tim Halter,USX China Index
Power Lunch
Hosted by: Michelle Caruso-Cabrera
CNBC
01/14/2004 1:00 -2:00 p.m. (03.59)
Michelle Caruso-Cabrera: "USX China Index which was up a whopping 103% for the year, now this is not a publicly traded index; however you can invest in the Chinese companies that make up that index".
"And here with more on the investment opportunities in China is Tim Halter, Founder and Managing Director of The USX China Index. He joins us from the NY Station, welcome, its nice to have you with us".
Tim Halter: "Thank you very much".
Michelle Caruso-Cabrera: "This is not yet a publicly traded index although you have had discussions about possibly taking this index public. Correct"?
Tim Halter: "We have had discussions, we have not reached any final decisions but I'll tell you we are a little overwhelmed with the positive response that we have had after we had launched the index. So we are seriously considering that".
Michelle Caruso-Cabrera: "A lot of people want to invest in China but its kind of daunting for many people. Trying to run down what companies to buy, whether you buy them individually, or in an index or in a fund that's an individual decision certainly, but that is one of the things that drove you to put together this index, is it not, the popularity and growth of China".
Tim Halter: "That is correct. Actually we assumed that this index already existed. What we were looking for was to track the performance of Chinese companies that were listed in the US market. Again, we assumed it was already being done and we in fact found that it was not. So last October we launched the index, and it is a pretty simple premise. It is to combine what we believe is the greatest investment opportunity in the world, which is China, with the safety and the transparency of the US market".
Michelle Caruso-Cabrera: "And you have worked up some guidelines or prerequisites for the companies that are eligible to be included in your index, the majority of their business has to be done in China and their common stock has to be traded on a US exchange. Correct"?
Tim Halter: "That is correct, one of the US national exchanges: Nasdaq, AMEX or New York. In addition, there is a market cap minimum as well; there must be at least $50 million market capitalization".
Michelle Caruso-Cabrera: "And what about liquidity and float and some of those things people worry about when they are investing in either a foreign market or in a foreign stock".
Tim Halter: "Well, that really speaks to the purpose of why we are following The USX China Index. In that these are companies that although the majority of their business is done overseas, these are US traded companies. They must meet the listing criteria, the float requirements, etc. for Nasdaq, AMEX or New York. So you invest in companies just as you would any other US public companies".
Michelle Caruso-Cabrera: "What struck me is that there are 34 companies, I believe, that are listed in the Index. And you just included the recently launched, China Life. Is it that you have a fairly diverse offering, you cover infrastructure as well as the technology side of things for China"?
Tim Halter: "Michelle, out of default what has resulted here is really a true reflection of the entire China economy. We do have everything from transportation to energy to basic manufacturing and even the Internet. So it really is a microcosm of what constitutes the China economy".
Michelle Caruso-Cabrera: "Alright, Mr. Halter, thanks very much for joining us. Please let us know if you do decide or if you work out a deal with one of the major exchanges to trade the Index. We do look forward to hearing more about that".
Tim Halter: "Thank you so much".
Michelle Caruso-Cabrera: "Tim Halter, Founder and Managing Director of The USX China Index joining us from New York".
###
|
|
