China Securities Index Co., Ltd. (CSI) plans to change the full name and abbreviation of the CSI 100 Index into the "CSI A100 Index" and "CSI A100" respectively on October 28, 2024.
The CSI 100 Index was released in May 2006 and optimized in June 2022 to better showcase the performance of leading A-share companies and further enhance the investability of the index. The compilation scheme for the optimized index incorporates factors such as industry balance, ESG, and connectivity, bringing the index more in line with other characteristic CSI "A" broad-based indexes, such as the CSI A50 and CSI A500. To better highlight the positioning of the index and enrich the characteristic broad-based index system, CSI plans to rename the CSI 100 Index as "CSI A100 Index".
The CSI A100 Index maintains its compilation method and is committed to reflecting the performance of leading A-share companies from the perspective of industry balance. As of September 2024, the total market value of the index samples was approximately RMB 23 trillion, with a median value of RMB 120 billion. The index is highly representative and balanced. In the latest samples, the free-float market value coverage of each CSI primary industry is about 30%. The combined proportion of industrial, information technology, communication services, and medical and health sectors is about 48%. The index samples perform well in fundamentals and ESG practice. On average, the return on equity and revenue growth rate over the past five years of the samples are 11% and 8.8% respectively, both surpassing the market averages. Nearly 70% of the samples have paid dividends for more than ten consecutive years, and almost 80% have been rated A or above by CSI in terms of ESG.
The characteristic CSI "A" broad-based index system has now taken its initial form, encompassing the CSI A50, CSI A100, CSI A500, and other indexes. The system reflects the performance of representative A-share companies from various industries from the perspective of industry balance. It illustrates the structural changes in the capital market and macro-industrial transformation across multiple dimensions, thereby providing a tool for investors to allocate representative A-share companies. The system is complementary to the main CSI scale index series represented by the CSI 300 and CSI 500. As the next step, CSI will continue to enrich and improve the broad-based index system while promoting the innovative development of domestic broad-based index investment. This effort will contribute to the development of a "long-term investment" ecosystem and support the high-quality development of the capital market.
The above information is provided for reference purposes only and does not constitute investment advice.
