Based on the Shanghai Shenzhen 300 Index (SHSE-SZSE300 Index), the serial Scale Indices, finalized recently by China Securities Index Co., Ltd. (CSI), will be launched officially on January 15, 2007. The four new indices, including the China Securities 200 Index (CSI200), the China Securities 500 Index (CSI500), the China Securities 700 Index (CSI700) and the China Securities 800 Index (CSI800), together with the SHSE-SZSE300 Index and the China Securities 100 Index (CSI100), constitute the CSI Scale Indices System. Among them, the CSI100, CSI200 and CSI500 are the large-cap, medium-cap and small-cap indices, respectively. The SHSE-SZSE300 Index and CSI700 are the large & medium-cap and medium & small-cap indices, respectively. And the last, CSI800 is made up of small, medium and large cap indices.
The introduction of the new indices, perfecting the CSI Indices System, provides more tools for market analysis and investment appraisal. Also, it will provide more choices for product innovation of index funds and ETF. Meanwhile, based on its Indices System, the CSI is developing other indices such as the industry index and style index.
By December 25, 2006, the CSI200, CSI500, CSI700 and CSI800 had closed at 1,747.546, 1,744.817, 1,747.779 and 1,878.743 points, respectively, with the rise of 106.68%, 102.85%, 104.92% and 109.03% this year, respectively.
The 200 constituents of the CSI200 account for 14.41% of the total A shares on the Shanghai and Shenzhen securities markets, with the total market capitalization and the floating market capitalization covering 13.21% and 22.25%, respectively. The 500 constituents of the CSI500 account for 36.02% of the total A shares on the Shanghai and Shenzhen securities markets, with the total market capitalization and the floating market capitalization covering 11.63% and 20.24%, respectively. The 700 constituents of the CSI700 account for 50.43% of the total A shares on the Shanghai and Shenzhen securities markets, with the total market capitalization and the floating market capitalization covering 24.84% and 42.49%, respectively.
The 800 constituents of the CSI800 account for 57.64% of the total A shares on the Shanghai and Shenzhen securities markets, with the total market capitalization and the floating market capitalization covering 88.78% and 85.38%, respectively. Besides, the CSI800, with its price-earnings ratio of 24.46, which is 2.70% lower than the average market level, has a total dividend of RMB86.538 billion for its constituents, accounting for 95.46% of the total dividend of the listed companies of A shares on the Shanghai and Shenzhen securities markets. According to the third quarter report of 2006, the net profit of CSI800's constituents is RMB238.985 billion, accounting for 98.06% of the total net profit of the listed companies on the Shanghai and Shenzhen securities markets. The report also shows that the weighted average earning per share of CSI800's constituents is RMB0.185, 11.30% higher than the average level of the listed companies on the Shanghai and Shenzhen securities markets.
To fully indicate the aforesaid price indices' income of capital gains and dividends, the CSI will also provide the daily closing data of their corresponding total income indices. (For details, please refer to the CSI's website www.csindex.com.cn.)
