China Securities Index Co., Ltd. (CSI) will announce the official launch of 10 Shanghai Shenzhen 300 Industry Indices (SHSE-SZSE300 Industry Indices) on July 2, so as to reflect the overall performance of companies from different industries in SHSE-SZSE300 Index.
The industry indices, by referring to international mainstream taxonomies of industry, are adjusted according to China's market characteristics. Constituents of the SHSE-SZSE300 Index are divided into 10 industries, namely, energy, raw materials, industry, optional consumable goods, main consumable goods, medicine & health, finance & real estate, InfoTech, telecom business and public utility. Then, stocks from different industries are sampled for compiling index, thus constituting 10 SHSE-SZSE300 Industry Indices. According to the published index scheme, the SHSE-SZSE300 Industry Indices are calculated in the same as that of SHSE-SZSE300 Index. Constituents of the SHSE-SZSE300 Industry Indices will be adjusted every six months. Time for adjusting the constituents is also the same as that for the SHSE-SZSE300 Index. Meanwhile, complete income indices of SHSE-SZSE300 Industry Indices will be published every day.
It is learnt that the introduction of SHSE-SZSE300 Industry Indices aims to provide more varied tools for investors to analyze and judge the SHSE-SZSE300 Index. As one of the important indices with highest authority and greatest influence on China's stock market, the SHSE-SZSE300 Index, the performance benchmark of a large number of funds, was also developed into index funds and ETF by several institutions home and abroad. With its tracked assets ranking No.1 among China's stock indices, it was selected as the underlying index by China's first stock index futures. As the SHSE-SZSE300 Index, being widely used, is attracting more attention on the market, investors need to anatomize, analyze and judge the index trends at different levels and from more perspectives. The launch of the SHSE-SZSE300 Industry Indices will help investors to have a comparative study on the SHSE-SZSE300 Index in terms of industry structure and have a better command of the index trends. It is also positive for regarding SHSE-SZSE300 Index as the performance benchmark and investment target as well as for the market application and investment research of such derivatives as stock index futures. The industry indices, by referring to international mainstream taxonomies of industry, facilitate investors' international comparison in the same industry structure. All this will help to promote the globalization of China's capital market. Besides, industry investment is blossoming all over the world. Some SHSE-SZSE300 Industry Indices can be taken as the performance benchmark of industry securities investment funds and can be developed into all kinds of index products. For the compilation rule and details about the SHSE-SZSE300 Industry Indices, please refer to the CSI website
