Wednesday, November 21, 2007

Hong Kong’s SFC approves first retail Islamic fund

by Rita Raagas De Ramos from (Hong Kong)

Hong Kong’s Securities & Futures Commission (SFC) has authorized the territory’s first Islamic fund for sale to retail investors, the Hang Seng Islamic China Index Fund. The Hang Seng Islamic China Index Fund is expected to be based on the Dow Jones Islamic Market (DJIM) China/Hong Kong Titans Index, which was licensed to Hang Seng Bank last month and is the latest addition to the DJIM index series. That index tracks 30 of the largest Shariah-compliant companies whose primary operations are in China and Hong Kong but trade on the Hong Kong stock exchange. To be included in the DJIM China/Hong Kong Titans Index, stocks must pass industry and financial ratio screens for Shariah compliance. Excluded are companies that are involved in alcohol, defense/weapons, entertainment, financial services, pork-related products and tobacco. Also excluded are companies for which the following financial ratios are 33% or more.

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