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Shenzhen Stock Exchange (“SZSE”) and Shenzhen Securities Information Co., Ltd. recently announced a periodic adjustment made to the sample stocks of a series of SZSE indexes including SZSE Component Index, SZSE 100 Index, SZSE SME Price Index, SZSE ChiNext Index and SZSE Small/Mid Cap Innovation Index. The change will be effective on the first trading day in January 2018.
Forty-five sample stocks of SZSE Component Index including Sihuan Bioengineering (000518) and North Industries Group Red Arrow (000519) will be replaced by Hualian Holdings (000036), Tunghsu Azure (000040) and other stocks. Ten sample securities of SZSE 100 Index including AECC AEC (000738) and China Media Group (000793) will be switched out by Shenzhen Tianma A (000050), Xingxing Doctile Iron Pipes (000778) and other stocks. Ten objects of SZSE SME Price Index including Haite Hi-tech (002023) and Jinjia Share (002191) will be taken place by E-fan Medicine (002019), Sanhua Smart Control (002050) and other stocks. Seven samples of SZSE ChiNext Index including Rastar (300043) and Sumavision Technologies (300079) will be replaced by Miteno (300038), Orbita (300053) and other stocks. Seventy-six sample securities of SZSE Small/Mid Cap Innovation Index including GQY Video & Telecom (300076) and Wuhan Fingu (002194) will be succeeded by Jidong Equipment (000856), Handbell (002158) and other stocks.
After the adjustment, SZSE Component Index shall represent 60% of the total capitalization and 61% of the free float capitalization of A-shares in SZSE market, further enhancing the market representativeness. In SZSE Component Index, the weight ratio of sample securities among the Main Board, SME Board and ChiNext is 44:40:16, approximate to the actual board proportion in the multi-tiered SZSE market. In SZSE 100 Index and SZSE Small/Mid Cap Innovation Index, such weight ratios are 56:33:11 and 27:50:23 respectively.
In terms of industry distribution, information technology is the largest industry in SZSE Component Index, accounting for 23% of the total weight and consumer discretionary industry ranks the second, with the weight of 17%. The top three industries in SZSE 100 Index are information technology (weight 22%), consumer discretionary (weight 21%), and finance and property (weight 18%). In SZSE ChiNext Price Index and SZSE SME Price Index, the No. 1 industry also falls in information technology which accounts for 33% and 36% of the total weight respectively. The most weighted industry in SZSE Small/Mid Cap Innovation Index geos to industry, with a percentage of around 24%. After the adjustment, the strategic emerging industry will account for 55%, 58% and 57% of the sample stocks in SZSE Component Index, SZSE 100 Index and SZSE SME Price Index respectively, and 75% in SZSE ChiNext Price Index, significantly higher than the average market level.
Please refer to the website of SZSE or CNINDEX (www.cnindex.com.cn) for a detailed list of the sample stocks of relevant indexes involved in the periodic adjustment.
