Shanghai Stock Exchange Multi-tiered Blue Chip Market Index System Improved With SSE 100, 150 Indices

After years of development, the Shanghai Stock Exchange (SSE) has basically developed a multi-tiered blue chip market index system composed of the indices based on shares of typical companies represented by SSE 180 constituents, shares of rising companies represented by SSE 380 constituents and shares of promising companies with great potential in growth.

To show the characteristics of shares in various market levels and provide new investment targets for investors, the SSE and China Securities Index Co., Ltd. (CSI) recently announced that they would release SSE 100 and 150 Indices on April 20, 2012, each with the base day of December 31, 2003 and the base point of 1,000 points.

According to the compilation scheme, SSE 100 Index, by taking SSE 380 Index as the sample space, selects as the samples the top 100 shares with the best performances in both the growth rate of business income and the rate of return on net assets to highlight the characteristics of rising companies in growth. SSE 150 Index, by taking the eligible shares on the Shanghai stock market with the constituents in SSE 180 and 380 Indices excluded as the sample space, selects as the samples the top 150 shares with the best performances in the growth rate of business income and the turnover rate to reflect the characteristics of promising companies in active stock trading and rapid development.

It is learnt that more and more small and medium-sized enterprises go public on the SSE. When the number of the promising listed companies with blue chip shares increases to a certain extent, the SSE is going to compile and release SSE 580 Index with eligible samples, which will be taken as the benchmark index for promising companies with blue chip shares. At that time, the SSE benchmark index series consisting of SSE180, 380 and 580 Indices as well as the corresponding SSE core investment index series made up of SSE 50, 100 and 150 Indices will be set up. These two index series will become a basic part of SSE index series, helping promote the establishment of a multi-tiered blue chip market and lay a solid foundation for the development of ETFs and other traded products based on the indices.

The latest data shows that SSE 100 and 150 Indices realize RMB797.6 billion and RMB457.9 billion in the aggregate market value respectively. Besides, the historical data reveals that the above two indices rose at an annual rate of 17.12% and 14.27% from 2004 to 2011 respectively.