.jpg)
Shenzhen Stock Exchange and Shenzhen Securities Information Co., Ltd. declared today to make regular adjustment to the sample stocks of SZSE Component Index, SME Board Index, ChiNext Board Index and other SZSE core indexes. Meanwhile, Shenzhen Securities Information Co., Ltd. also declared to adjust the sample stocks of CNINFO 40 Index, CNINFO 100 Index and other cross-market indexes. This adjustment will be valid from the first trading day in January 2012.
In the adjustment, 3 stocks under the SZSE Component Index will be replaced: XCMG Construction Machinery, China Nonferrous Metal and Changyu A will be added to the index, while Guoyuan Securities, Hualan Biological and Faw Car will be deleted; 9 stocks under the SME Board Index will be replaced: Jinggong Science and Technology, Goodark and other 7 stocks will be added to the index, while Jiangsu Miracle, Novel and other 7 stocks will be removed; 2 stocks under the ChiNext Board Index will be replaced: Zhenghai Magnetic Material and D.A. Diagnostics will be included in the index, while Dinghan Technology and Tianyuan Dic will be excluded; 6 stocks under the SZSE 100 Index will be replaced; Oceanwide Real Estate, Tianshan Cement and other 4 stocks will be added to the index, while Jinling Mining Baolihua, New Energy Stock and other 4 stocks will be excluded. 2 stocks under the CNINFO 40 Index will be replaced; Xishan Coal & Electricity Power and Yangtze Power will be removed from the index, while Baotou Steel Rare-earth and China Coal Energy will be included. 6 stocks under the CNINFO 100 Index will be replaced; Hong Yuan Securities, Faw Car and other 4 stocks will be removed from the index, while China Nonferrous Metal, Shuanghui Investment and Development and other 4 stocks will be included.
After the adjustment, the circulation market value coverage rate of SZSE and CNINFO core indexes will increase. The circulation market value of SZSE Component Index and SZSE 100 index accounts for 27.42% and 41.82% of Shenzhen securities market, increasing by 0.48% and 0.45% respectively compared with the coverage rate before adjustment; the circulation market value of SME Board Index accounts for 48.26% of SME board market, increasing by 1.67%; the circulation market value of ChiNext Board Index accounts for 60.65% of ChiNext board market, increasing by 0.22%; and the circulation market value of CNINFO 40 Index and CNINFO 100 Index accounts for 44.68% and 55.28% of Shanghai and Shenzhen market, increasing by 0.23% and 0.48% respectively.
According to the data revealed in the Third Quarterly Financial Report of 2011, the net profit from the sample stocks of SZSE Component Index and SZSE 100 Index accounts for 36.7% and 51.20% of Shenzhen securities market respectively; the net profit from the sample stocks of SME Board Index accounts for 44.83% of SME board market; the net profit from the sample stocks of ChiNext Board Index accounts for 53.8% of ChiNext board market; the net profit from the sample stocks of CNINFO 40 Index and CNINFO 100 Index accounts for 53.8% of the Shanghai and Shenzhen market, all of which have increased compared to the net profit before this adjustment. Besides, during this adjustment, some stocks with excellent growth are added to the index, especially to the SME Board Index and the ChiNext Board Index. The sample stocks of SME Board Index will gain an income growth rate of 42.3% and a net profit growth rate of 20.1%, increasing by 15.5% and 3.5% respectively; the component stocks of ChiNext Board Index will gain an income growth rate of 39.1% and a net profit growth rate of 27.6%, increasing by 3.9% and 3.4% respectively.
In terms of valuation, according to the calculation based on the closing price on December 9, 2011, the dynamic price to earning ratios of SZSE Component Index and SZSE 100 Index are 16.4 and 17.0 respectively, 33.48% and 30.73% lower than that in Shenzhen securities market; the dynamic price to earning ratios of SME Board Index are 24.0, 13.16% lower than that in SME board market; the dynamic price to earning ratios of ChiNext Board Index are 39.4, 12.65% higher than that in ChiNext board market; the dynamic price to earning ratios of CNINFO 40 Index and CNINFO 100 Index are 9.6 and 9.8 respectively, 28.5% and 27.0% lower than the average level in Shanghai and Shenzhen’s A-share market.
By virtue of this sample adjustment, the trading of SZSE and CNINFO core indexes will be more brisk. The daily turnover of each index realizes a slight increase, with increasing amount ranging from 1.1% to 5.8%; meanwhile, the daily turnover rate of each index (especially the indexes in Shenzhen securities market) is also increased. Since 2011, the daily turnover rate of SZSE Component Index, SME Board Index, ChiNext Board Index and of SZSE 100 Index is 1.06%, 1.28%, 2.45% and 1.19% respectively.
