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Groupmark Financial Services, Ltd. Launches Unique China Index Highlighting Undervalued Chinese Stocks Trading in the United States

Posted on: Monday, 20 July 2009, 08:15 CDT

FLEMINGTON, N.J. and BEIJING, July 20 /PRNewswire/ -- Groupmark Financial Services, Ltd. has officially launched a new index that follows Chinese companies trading on North American stock exchanges, but whose businesses are primarily in China. The Groupmark China Index (http://groupmarkchinaindex.com) follows a select group of companies and provides leading indicators of the Index performance on a timely basis.

Groupmark's founders realized in October 2009, at the worst of the financial crisis, that many of the once highflying Chinese-based company's stocks were hit more severely then their U.S. counterparts. This was especially true for companies under a billion dollars in market capitalization. The problem wasn't the companies' fundamentals, but was instead their ability to gain exposure to the American investing public.

As stated in Groupmark Financial's research paper "The Chinese Company Dilemma"(http://www.groupmarkltd.com/index.php?option=com_content&view=article&id=68&Itemid=53), many Chinese companies are ill equipped to speak to the American public. The irony is that these companies have gone to great lengths in order to become listed on an American exchange for the exposure. Seeking to expose these fundamentally undervalued companies to the public, Groupmark Financial developed the unique new index that tracks their progress.

In an effort to represent the most undervalued securities, the weighting of the index is different than similar indices which are weighted by market cap, (therefore representing the best-known stocks). The Groupmark China Index uses a proprietary formula including revenues, earnings per share, return on equity, return on assets and two other fundamental indicators to weight the index. Its creators believe the index better represents the undervalued and unknown Chinese companies. The index also excludes stocks trading above a billion dollar market cap at the time the index was created. Since that time, several stocks have moved above the billion dollar mark and remain in the index. The index gets re-balanced quarterly to reflect the most recent earnings reports.

About Groupmark Financial Services, Ltd.

Groupmark is a privately owned, global Corporate Consulting and Investor Relations company. Combining solid experience, strong capabilities across a wide range of industries and business functions, and extensive research on the most successful companies, Groupmark collaborates with clients to help them become high-performance businesses. For more information, see http://groupmarkltd.com The Company maintains a blog on the index with timely commentary and market changes at http://blog.groupmarkchinaindex.com

Media Contact: Leonard Braumberger Toll free +1-800-796-0258 x 706

SOURCE Groupmark Financial Services, Ltd.

Source: PR Newswire

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