SZSE Dividend 50 And Dividend 100 Indices Issued

Shenzhen Stock Exchange (SZSE) and Shenzhen Securities Information Co., Ltd. recently announced to issue SZSE Dividend Weighted 50 Index (Code: 399672, Abbreviation: SZSE Dividend 50), CNI Dividend Weighted 100 Index (Code: 399411, Abbreviation: Dividend 100) on April 10, 2014. Both indices take December 31, 2008 as the base date and 1000 points as the base value.

Cash dividend of public company is a fundamental system of capital market, serving also as an important way to return the investors. Long-term and stable cash dividend reflects sound operation and profit capability of the public company. As historical data shows, public companies with high dividend are advantageous in valuation and are of long-term investment value. In overseas market, investment themed as high cash dividend is highly recognized by the market participants.

Those public companies listed in Shenzhen Market that implement cash dividend in 5 consecutive years are taken as sample space for SZSE Dividend Weighted 50 Index. Sifted by dividend rate indicator, and given consideration to the market value scale of listed companies, the top 50 stocks in the comprehensive ranking are selected to form the sample of SZSE Dividend 50. Likewise, those public companies listed in Shanghai and Shenzhen markets that implement cash dividend in 5 consecutive years are taken as sample space for CNI Dividend Weighted 100 Index. Sifted by dividend rate indicator, and given consideration to the market value scale of listed companies, the top 100 stocks in the comprehensive ranking are selected to form the sample of Dividend 100. Both SZSE Dividend Weighted 50 Index and CNI Dividend Weighted 100 Index are calculated weighted by cash dividend rate, and their samples will be adjusted on the first trading day in January each year.

According to data, from the base day to December 31, 2013, accumulative return of SZSE Dividend 50 and Dividend 100 indices are 67.19% and 60.42% respectively. Comparing with the accumulative return of Shanghai and Shenzhen markets benchmark index CNINFO 1000 over the same period, which is 55.36%, those of SZSE Dividend 50 and Dividend 100 exceed by 11.83%, 5.06%. According to the statistics of 2013 sample, the advantages of dividend weighted indices are prominent, with the dividend rate of SZSE Dividend 50 and Dividend 100 being 2.17% and 3.69% respectively, while those of Shenzhen Market and A-share Market being 1.08% and 2.31% respectively,.

More specific material on SZSE Dividend 50 and Dividend 100 indices can be found on the website of CNI Index （www.cnindex.com.cn）.