Shenzhen Stock Exchange Low Volatility, High Beta Series Indices Launched

Shenzhen Stock Exchange and Shenzhen Securities Information Co., Ltd. jointly announced on December 20, 2012 to issue SZSE low volatility, high beta series indices, which include SZSE 300 Low Volatility Index(Abbreviation: S300 LV, Code: 399661), SZSE 300 High Beta Index (Abbreviation: S300 HB, Code: 399662), SME 300 Low Volatility Index(Abbreviation: SME LV, Code: 399663), SME 300 High Beta Index(Abbreviation: SME HB, Code: 399664), SME-ChiNext 500 Low Volatility Index(Abbreviation: SME-ChiNext LV, Code: 399665), SME-ChiNext 500 High Beta Index(Abbreviation: SME-ChiNext HB, Code: 399666).

SZSE Low Volatility and High Beta series indices take SZSE Core Index as sample space, respectively selecting stocks of low volatility and high beta as sample stocks. As indicated by the research at home and aboard, low volatility indices can reduce the portfolio risk, prevent market bubble, and outperform their parent indices in the long term; whereas high beta indices provide perfect trading instrument targets related to high elasticity portfolio of ever-changing market. By separating stocks of different risk scale, SZSE Low Volatility, High Beta series indices, provide investment targets of different risk, thus facilitate the investors to better understand and control market risk.

As the data shows, the indices have very distinct style features, with the volatility rate of S300 LV, SME LV, SME-ChiNext LV respectively 2.21%, 4.83% and3.47% lower than those of their parent indices, while the beta of S300 HB, SME HB, SME-ChiNext HB respectively 12.84%, 16.16% and 13.85% higher than those of their parent indices.

More material on the indices can be found on the website of Shenzhen Stock Exchange (www.szse.cn) and the website of CNINFO Index (index.cninfo.com.cn).