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The SSE Cyclical Industry 50 Index (SSE Cyclical, with the code of "000063") and the SSE non-Cyclical Industry 100 Index (SSE non-Cyclical, with the code of "000064") will be officially launched on February 3, 2010 as benchmarks for the trends of stocks in different industries to offer investors new investment targets, the Shanghai Stock Exchange (SSE) and China Securities Index Co., Ltd. (CSI) announced recently. The base days of the above two new indices are both December 31, 2003, with the base points of both 1,000.
According to the published index compilation schemes, both SSE Cyclical and non-Cyclical constituents are selected from that of SSE Large & Mid & Small Cap Index. Constituents of SSE Cyclical are made up of 50 stocks with large market capitalization and sufficient liquidity in five industries with strong cyclical features, namely finance and insurance, mining, transportation and storage, metal and non-metal and real estate, while constituents of SSE non-Cyclical consist of 100 stocks with large market capitalization and sufficient liquidity in the remaining 17 industries subject to the industry classification of the China Securities Regulatory Commission.
Statistics show that by January 11, 2010, the market capitalizations of SSE Cyclical and non-Cyclical had been RMB10,630.7 billion and RMB2,798.3 billion, or 58.87% and 15.50% of that of A shares on the SSE, respectively, with the free float adjusted market capitalizations of RMB2,465.6 billion and RMB1,234.0 billion, accounting for 41.81% and 20.92% of that of A shares on the SSE, respectively.
Following the adjustment to the constituents of the SSE Large & Mid & Small Cap Index, the SSE Cyclical and non-Cyclical indices undergo biannual regular adjustments, with the time for the adjustments on the first trading days in January and July each year. Special adjustments will also be made under special circumstances. For compilation methods and detailed materials of the SSE Cyclical and non-Cyclical indices, please refer to the websites of the SSE and CSI.
It is learnt that some fund companies have committed themselves to the development of ETF products of the SSE Cyclical and non-Cyclical indices.
As of January 11, 2010, the SSE Cyclical and non-Cyclical indices had closed at 2,947 and 2,409 points, respectively.
