FAQs

1) What is the purpose of The Halter USX China Index?
The Halter USX China Index was created in response to the unique opportunities taking place in China as well as the current dynamics in the United States capital markets. The Chinese economy has been growing at almost a double digit annualized pace and its companies offer some of the best returns in the world. US investors have taken notice. However, having learned some difficult lessons from the last market downturn, US investors are approaching China with some degree of caution. Though there is tremendous demand in the US for Chinese stocks, concerns about transparency and political risk still remain.

These concerns have been reduced by Chinese companies that list directly on US exchanges. The trend is providing the middle ground for bringing together the largest capital source with the largest emerging market opportunity. The Halter USX China Index was created in recognition of this important development and in the absence of any existing index to track this growing niche of Chinese companies listing directly on major US exchanges.


2) What are the selection criteria to be included in the index?
The Halter USX China Index is comprised of companies whose common stock is publicly traded in the United States and the majority of whose business is conducted within the People's Republic of China. For a company to be included in The Halter USX China Index, it must be listed on the NYSE or Nasdaq and have an average market capitalization of at least $50 million for the preceding 40 trading days. Please refer to the methodology section of our website for a complete listing of selection factors.


3) How is the index calculated?
The Halter USX China Index is calculated using a modified market capitalization weighting methodology. The components market capitalization weights are modified to conform to the Registered Investment Company asset diversification rules, which are applied in conjunction with the scheduled quarterly updates to the Index. For a full description please refer to the methodology section of our website for a complete listing of selection factors.


4) Who decides on what companies are added or deleted from the index?
The Halter USX China Index Selection Committee makes all decisions on additions and deletions based on each company's ability to meet set criteria.


5) What is the symbol for the index?
The symbol for the index is HXC. Some data providers may require a notation like "^" in front of the letters HXC or some other unique notation, depending on the specific data provider. Please check the unique index notation for your provider and add the letters "HXC" after that notation to receive the current index value.


6) Where else can I find a quote on The Halter USX China Index other than this website? What financial data providers offer quotes on this index?
The NYSE Arca serves as the calculation agent for the Index. The NYSE Arca disseminates that value of the Index every 15 seconds over the Consolidated Tape Association's Network B between the hours of approximately 9:30am and 4:15pm under the ticker symbol "HXC".


7) How do I invest in the index?
The PowerShares Golden Dragon Halter USX China Portfolio, is an exchange traded fund (ETF) based on our Halter USX China Index, which is listed on the NYSE under the symbol “PGJ”. The ETF is designed to closely track the companies in the Index and to invest a universe of top companies whose common stock is publicly traded on a national U.S. exchange and the majority of whose business is conducted within the People’s Republic of China.


8) How do currency fluctuations affect international investments?
One risk factor investors have to take into consideration when investing overseas is currency fluctuation. A U.S. investor's foreign investment returns depend on both the foreign assets' market value in terms of the local currency, as well as the currency's exchange rate against the U.S. dollar, since the foreign assets will be converted into dollars at some future date. For a U.S. investor, an investment gain arises when the value of the dollar falls against the currency in which a foreign security is denominated. An appreciation of the dollar against the foreign currency could result in a loss regardless of how well the foreign security performed. However, the shares of The Halter USX China Index constituents are denominated in dollars so the foreign exchange factors are indirect.


9) If the Yuan is allowed to float, what affect does that have on investments in Chinese companies?
Again, for a U.S. investor, an investment gain arises when the value of the dollar falls against the currency in which a foreign security is denominated. The current economic consensus points to the fact that the Chinese Yuan is undervalued, accounting for a potential locked in profit for US investors, before counting any appreciation of the underlying investment.

In addition to direct impacts of currency fluctuations, there are also indirect impacts. Various economic factors often interact with each other and result in adverse movements of exchange rates and equity prices. For example, a weakening of the dollar against the Yuan could negatively impact some export-driven Chinese companies, especially those with a large presence in the American marketplace. These Chinese companies' stock prices might suffer as a result, but this effect would be countered by the gains arising from the conversion of the U.S. dollar into the Yuan.


10) Who do I contact with other specific index related questions?
For additional information please complete the contact us form.