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SZSE and CSI announced today that SZSE Industry Chain Indices are to be launched on Oct 18rd 2011. SZSE Industry Chain Indices comprises 3 indice: SZSE Upstream Industry Index、SZSE Midstream Industry Index and SZSE Downstream Industry Index .Within Stocks in A shares listed at Shenzhen Stock Exchanges, SZSE Industry Chain Indices comprises top stocks on the basis of market capitalization as well as Industry Chain characteristic. The base date of the CSI Industry Chain indices is Dec 31st 2002 and the base value is 1000.
ShenZhen Stock Exchange
China Securities Index co.Ltd
Sep 30 2011
SZSE Industry Chain Indices Methodology
1. Index Name and code
Name: SZSE Upstream Industry Index(SZSE Upstream)；Code:399704
Name: SZSE Midstream Industry Index (SZSE Midstream); Code:399705
Name: SZSE Downstream Industry Index(SZSE Downstream); Code:300706
2. Base Period and Base Point
The Base Day for SZSE Industry Chain Indices is Dec 31, 2002. The Base Period is the adjusted market capitalization of all constituents after closing on the Base Day. The Base Index is 1000 points.
3. Selection Method
3.1 Industry Chain Classification
Based on CSI Industry Classification Standard, Oil, Gas & Consumable Fuels, Aluminum, Gold, Precious Metals & Minerals and so on are classified as Upstream industries; Commodity Chemicals, Steel, Industrial Conglomerates, Communications Equipment and so on are classified as Midstream industries; Automobiles, Consumer Services, Consumer Durables & Apparel, Food Beverage，Health Care Equipment & Services，Telecommunication Services and so on are classified as Downstream industries.
3.2 Index Universe
Stocks in A shares listed at Shenzhen Stock Exchanges(Non-ST or *ST stocks);
3.3 Selection method
First, Calculate the daily average trading value during the most recent year for stocks in the index universe, rank the stocks in the universe by daily average trading value of the most recent year in descending order and delete the bottom ranked 20% stocks in the index universe。
Rank all the companies in relevant Industries by average daily market cap in the past year
50 top ranked stocks in Upstream industry are selected as constituents of SZSE Upstream Industry Index;150 top ranked stocks in Midstream industry are selected as constituents of SZSE Midstream Industry Index; 100 top ranked stocks in Downstream industry are selected as constituents of SZSE Downstream Industry Index
4. Index Calculation
The same with that of CSI 300 index.
5. Index Maintenance
The same with that of CSI 300 index.
6. Constituents Periodical Review
Constituents of SZSE Industry Chain Indices are reviewed every 6 months. Constituents adjustment are implemented on the first trading day of July and January each year. Number of constituents adjusted at each periodical review will not exceed 20%.
