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Q: The Shanghai Stock Exchange (SSE) and the China Securities Index Co., Ltd. (CSI) announced today that stocks that have been listed on the SSE STAR Market for more than one year will be included into the index universe of the SSE 180, CSI 300 and other constituent indices. Can you brief us on the circumstances and considerations for the inclusion?
A: In order to adapt to the changes in the securities market, the SSE and the CSI have fully listened to the opinions in the market. After the review and discussions by the index expert committee, it is decided that stocks that have been listed on the SSE STAR Market for more than one year are eligible to be included into the index universe of the SSE 180, CSI 300 and other constituent indices, and may be incorporated into the relevant indices in the next regular adjustment to the constituents.
After more than one year of stable operation, the SSE STAR Market has become an important part of China’s capital market, with outstanding achievements in institutional innovation, and has successfully listed companies with weighted voting rights, companies that have yet to make a profit, and depositary receipts issued by red-chip companies. The STAR 50 Index has been running stably for more than three months and has been widely recognized by the market. In order to further enhance the influence of the SSE STAR Market, introduce more medium and long-term funds, and provide investment channels for small and medium-sized investors, it is imperative for the STAR Market-listed stocks to be included in the constituent indices. Extensive market research domestically and abroad shows that institutional investors hold a positive and affirmative attitude towards the inclusion of the STAR Market-listed stocks into the SSE 180, CSI 300 and other constituent indices.
It is reported that the next regular adjustment of the constituents will take effect on December 14, 2020, when the STAR Market-listed stocks are expected to be found in the SSE 180, CSI 300 and other major indices for the first time, and the indices will better represent our market.
