Shenzhen Stock Exchange and Shenzhen Securities Information Co., Ltd. recently announced to make regular adjustment to the sample stocks for SZSE ChiNext Index, which will come into effect as of the first trading day of April in 2014.
In the adjustment, SZSE ChiNext Index will adjust 7 sample stocks, including taking in Liaoning Julong Financial, Top Resource Conservation and Ganglian Holdings and removing Sino-crystal Diamond, Dongbao Bio-tech and Beilu Pharmaceutical. The newly added sample stocks are focused on the industries of information technology and optional consumer products.
The adjustment will result in enhanced market representativeness for SZSE ChiNext Index. After the adjustment, its coverage of total market capitalization will increase from 52% to 54%, and tradable market capitalization will increase from 57% to 58%. From the view of sector allocation, the proportion of information technology industry and optional consumer products industry will be increased to 32% and 16% respectively, while the proportion of raw material industry will be decreased. According to the 2013 earnings forecasts announced by the 100 post-adjustment sample companies, 9 of them are reporting a YOY growth of over 100%, 18 are reporting a YOY growth of over 50%, and 58 are reporting a YOY growth of over 20%. It indicates that SZSE ChiNext Index is representing a good growth.
In light of high growth characteristics of the ChiNext board, SZSE ChiNext Index makes regular adjustment to sample stocks on a quarterly basis to ensure the timely inclusion of market new vigor, which distinguishes itself from other indices in the market.
More materials can be found on the website of Shenzhen Stock Exchange (www.szse.cn) and the website of CNINDEX (www.cnindex.com.cn).