According to the rules on construction of index numbers, regular adjustment will be made to the sample stocks of the SZSE serial indexes including SZSE Component Index, SME Index, ChiNext Index and SZSE 100 Index, Shenzhen Stock Exchange (SZSE) and Shenzhen Securities Information Co., Ltd. (SSIC) announced. SSIC also disclosed that CNINDEX 1000 and other cross-market indexes will experience similar periodical changes in their sample stocks. The change will be officially made on the first trading day of January 2017.
In this round of regular adjustment, 50 sample stocks of SZSE Component Index will be shuffled, with First Capital and Perfect World replacing Jidong Cement and Santai Holding, just to name a few. For SME Index, 10 sample stocks will be changed, with Do-fluoride and Victory Precision replacing LYPM and Lianhetech, for example. For ChiNext Index, 6 samples stocks will be changed, for instance, with Tongyu Heavy Industry and All Winner Technology replacing Xiangxue Pharmaceutical and Dinghan Tech. For SZSE 100 Index, 10 samples stocks will be changed, with SJEP and Hualan Biological Engineering replacing XCMG and Bluefocus, for example.
After the re-arrangement, the coverage ratios of SZSE Component Index in the total market value and free flow market value of Shenzhen A-share market will be 53% and 56% respectively. In SZSE Component Index, its sample stocks include 156, 227 and 117 stocks respectively selected from the main board, SME board and ChiNext board, with the weight of each board being 43%, 48% and 18% respectively. The ratios are more similar to the real distribution of each board in Shenzhen market. In the adjusted SZSE 100 Index, the number of sample stocks from SME board increases from 33 to 38 and the board weight goes up to 31% while ChiNext board still keeps 16 units in the sample stocks but its weight rises to 14%.
Statistics shows that after the adjustment, the industrial distribution and structure of the core indexes of Shenzhen market further highlight the market's strategic positioning of serving emerging industries and new economies. In SZSE Component Index, 228 sample stocks fall into the state strategic emerging industry, with their weight being 46% of the total. In SME Index and ChiNext Index, 47 and 75 sample stocks are from the state strategic emerging industry respectively, with their respective weight being 49% and 79%. In addition, in SZSE Component Index, information technology industry still holds the largest weight, 23%. Industries occupying the second and the third largest weight (17% and 14% respectively) are discretionary consumption and finance & real estate. In ChiNext Index, the weight of information technology industry amounts to 49% and the total weight of emerging industries, including information technology, medical and health, discretionary consumption, substantial consumption and telecom business, approximates 80%.
After the adjustment, the core indexes of Shenzhen market will features the high-growth of SZSE-listed companies. In accordance with the Q3 report of 2016, the year-on-year net profit growth rates of the latest round of sample stocks of SZSE Component, SME, ChiNext and SZSE 100 Indexes are 15%, 14%, 57% and 5% respectively and the new profit growth rate of CNIDEX A, which reflects the whole A-share market, is 2%.
