Nasdaq Stock Market, Inc. announced plans to introduce the Nasdaq China Index in Beijing Wednesday.

The index is designed to track the performance of Chinese companies whose securities are listed and actively traded in the U.S., according to the company.

Nasdaq will introduce the index in the second quarter of 2007, said Nasdaq CEO Robert Greifeld without giving a specific date.

The Index will initially be comprised of 30 Chinese companies with a combined market capitalization of more than 600 billion U.S. dollars that are listed on Nasdaq, the New York Stock Exchange, or the American Stock Exchange, Greifeld said.

"This Index will enable investors worldwide to follow companies in a broad range of industries," said Nasdaq Executive Vice President John Jacobs.

"China is on the verge of becoming the world's fourth-largest economy, a testament to the innovative companies that are included in this essential investment index," he said.

The Nasdaq China Index will be calculated using a modified market capitalization methodology. Companies headquartered in China, inclusive of Hong Kong, which are listed on Nasdaq, the New York Stock Exchange, or the American Stock Exchange are eligible for the Index.

To be eligible, stocks must also have a minimum worldwide market capitalization of 200 million dollars, a minimum average daily U.S. trading volume of 100,000 shares, and a minimum price of 3.00 dollar per share.

With a total of 40 Chinese companies now listed on Nasdaq, representatives of the companies met with Greifeld in Beijing on Tuesday to celebrate.

Nasdaq, the largest electronic screen-based equity securities market in the United States, lists about 3,200 companies, including Microsoft, Dell and Yahoo. The market value of these companies exceeds 4,000 billion US dollars.

Source: Xinhua