Shenzhen Stock Exchange and Shenzhen Securities Information Co., Ltd. declared today to issue the SZSE sector index series on June 15, 2011, including SZSE energy sector index, SZSE raw material sector index, SZSE industrial sector index, SZSE consumer discretionary sector index, SZSE consumer staples sector index, SZSE health care sector index, SZSE financials sector index, SZSE IT sector index, SZSE telecommunication services sector index, and SZSE utilities sector index, taking December 31, 2004 as the base date, and 1000 points as base point.
As shown in the preparation scheme, SZSE sector indices have divided the listed companies into 10 primary sectors by referring to the international mainstream sector classification standards and combining the characteristics of Chinese market. As to the sampling method, the top companies in the relevant sector will be selected into the index according to their ranking in the sector in terms of the circulation market value from top to bottom, until 75% of the total market value of the board for the sector is covered, and there is no upper limit on the quantity of the sample stocks.
SZSE sector index is an important part of the multi-level SZSE index architecture. The characteristics of Shenzhen market, such as fast growth, high proportion of emerging industries and large quantities of SMEs, as well as the horizontal comparability of the sector index as an important asset configuration tool, are taken into full consideration in its design. The issuance of the SZSE sector index will provide more research tools and investment targets for the investors, and satisfy the need of ETF products for quick development. It is reported that certain fund companies have tried to apply for the use license of SZSE sector index, in order to develop ETF products.