Following the adjustment, three components have been replaced in the Dow-China 88, which tracks the largest and most liquid 88 stocks in China’s Class-A market and reflects roughly 36.96% of the total free float market capitalization of both the Shanghai and Shenzhen markets. The number of Shanghai-listed stocks in the Dow-China 88 remains 59 components, and the number of Shenzhen-listed stocks remains 29 components. Shanghai-listed stocks represent 73.21% of the free float market capitalization of the Dow-China 88, compared to 26.79% for Shenzhen-listed components.
On October 10, the components of the Dow-China Total Market will increase to 1161 from 1152, with 1096 A-shares and 65 B-shares. The number of components in the Dow-Shanghai Index will increase to 708 from 707, with 11 additions and 10 deletions, and the number of components in the Dow-Shenzhen index will increase to 453 from 445, with 17 additions and nine deletions. The Dow-Shanghai index represents roughly 95% of the free float market capitalization of Shanghai market, and the Dow-Shenzhen index represents roughly 95% of the free float market capitalization of Shenzhen market. The Dow-China Total Market Index reflects roughly 95% percent of the free float market capitalization for both the Shanghai and Shenzhen markets.
Dow Jones Indexes completed the fifth regular quarterly review for the Dow Jones CBN China 600 Index, which was launched on September 6, 2004. As a result of this regular review 28 components have been replaced in the DJ-CBN 600 Index, which reflects roughly 80% of China’s total free float market capitalization.
Aimed at providing investors in China and around the world with an accurate tool for tracking equity performance in China’s growing stock markets, the Dow-China Indexes are constructed with the same strict standards used to develop the Dow Jones Global Indexes.
Float-adjusted shares, which exclude all state-owned shares and unlisted employee shares, are used for stock selection and index calculation, in order to provide an accurate representation of the shares that are actually available to investors for trading. Dow Jones Indexes excludes block holdings of individuals, other companies or governments that exceed 5% of total market value in calculating free-float for selection of component stocks.
The Dow-China 88, Dow-China Total Market, Dow-Shanghai and Dow-Shenzhen were launched May 27, 1996 to commemorate the 100th anniversary of the world’s most widely reported market indicator, the Dow Jones Industrial Average, which was launched in 1896. All four indexes in the Dow-China Index series have a base value of 100 on Dec. 31, 1993.
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Add and Delete list of Dow-China 88 October 10, 2005 |
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| Addition | |
| Symbol | English Name |
| 000937 | Hebei Jinniu Energy & Resources Co., Ltd. |
| 600027 | Huadian Power International Co., Ltd. |
| 600811 | Orient Group Incorporation |
| Deletion | |
| Symbol | English Name |
| 000554 | SINOPEC Shandong Taishan Petroleum Co., Ltd. |
| 600282 | Nanjing Iron & Steel Co., Ltd. |
| 600643 | Shanghai AJ Corp. |
