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Shenzhen Stock Exchange (SZSE) and Shenzhen Securities Information Co., Ltd. recently announced to issue SZSE Select Index (Code: 399013, Abbreviation: SZSE Select) on May 30, 2014. SZSE Select Index aims at reflecting the operation feature of the leading companies listed in Shenzhen Market, and further enriching SZSE index system. SZSE Select Index takes December 31, 2004 as the base date and 1000 points as the base value.
After two decades of development, Shenzhen Market has witnessed the emergence of a group of leading public companies of social responsibility and social influence. By virtue of the capital market, these companies grow swiftly, bringing affluent return to the investors. By incorporating these leading companies, which are being transparent, large, influential, as its sample stocks, SZSE Select Index set examples and benchmark for steering public companies to improving the quality of information disclosure, facilitate the standardized operation and sound development of public companies. At the same time, SZSE Select offers a new index instrument for investors to share economic development fruits.
By referencing to the transparency, market capitalization, liquidity, revenue and net profit, some of public companies listed on the Main Board, the SME Board are selected to compose the sample stocks for SZSE Select Index. The number of the sample is unfixed, and will be adjusted on the first trading of every July. Every IPO companies that meet the relevant criteria can be selected as the sample stock rapidly.
The current sample stocks for the Index include 307 companies, among which, 130 are listed on the Main Board, and 177 are listed on the SME Board. Most of these sample stocks are the leading companies of different sectors. Sample stocks cover 56 CSRC Sector Categories. The most heavily-weighted sectors are computer telecommunication equipment manufacturing industry, pharmaceutical industry, electric machinery and equipment manufacturing industry, with their weights being 11.3%, 8.9% and 8.4% respectively.
In 2013, the revenue of the 307 sample stock companies reaches CNY2.8641 trillion, accounting for 53.6% of the total revenue of the Main Board and the SME Board. Their net profit is CNY 226.1 billion, account for 75.1% of the total net profit of the companies listed on two boards. With the rate of return on common stockholders’ equity reaching 11.6%, the sample stock companies display strong profit capacity. As the latest data shows, stock sample companies, which account 26% of the total companies listed on the Main Board and the SME Board in terms of number, 57% in terms of total market capitalization, and 45% in terms of daily average turnover, are good representations of the market.
More specific material on SZSE Select Index can be found on the website of Shenzhen Stock Exchange (www.szse.cn) and the website of CNI Index （www.cnindex.com.cn）.
