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According to the index construction rule and upon discussion by the committee of index experts, the Shanghai Stock Exchange (SSE) and China Securities Index Co., Ltd. (CSI) has recently announced its adjustments to the constituents of the SSE 180 Index, the SSE 50 Index and the SSE Dividend Index. Besides, the CSI also announced its adjustments to the constituents of the Shanghai Shenzhen 300 Index (SHSE-SZSE300 Index), China Securities 100 Index (CSI100) and China Securities 500 Index (CSI500). The constituents' change will come into effect as of the first trading day of January 2008.
Among the constituents' adjustment, 18 stocks of the SSE 180 Index will be changed, with China Construction Bank Corporation (CCB) and Western Mining Co., Ltd. (Western Mining), etc. to be added, and Anhui Expressway Company Limited and Wuhan Yangtze Communication Industry Group Co., Ltd., etc. to be deducted. After the adjustment, the SSE 180 Financial Index will have 15 constituents. 5 stocks of the SSE 50 Index will be changed, with CCB and Western Mining, etc. to be added, and Beijing Gehua CATV Network Co., Ltd. and China Shipping Development Company Limited, etc. to be deducted. 10 stocks of the SSE Dividend Index will be changed, with Inner Mongolia Baotou Steel Union Co., Ltd. and Sinochem International Corporation, etc. to be added, and S Shanghai Petrochemical Co., Ltd. and China Enterprise Company Limited, etc. to be deducted. 30 stocks of the SHSE-SZSE300 Index will be changed, with China COSCO Holdings Company Limited (COSCO) and Bank of Beijing Co., Ltd. (Bank of Beijing), etc. to be added, and China Great Wall Computer Group Co., Ltd. (Great Wall Computer) and S Shenzhen Seg Samsung Glass Co., Ltd., etc. to be deducted. 10 stocks of the CSI100 will be changed, with COSCO and Bank of Beijing, etc. to be added, and Shenzhen Airport Co., Ltd. and Yunnan Baiyao Group Co., Ltd., etc. to be deducted. 50 stocks of the CSI 500 will be changed, with Great Wall Computer and Guangdong Provincial Expressway Development Co., Ltd. (A Shares), etc. to be added, and Beijing Four Rings Biopharmaceutical Co., Ltd. and An Hui Wenergy Company Limited, etc. to be deducted. Meanwhile, constituents of China Securities 200 Index, China Securities 700 Index, China Securities 800 Index and CSI 300 Sector Index will also be adjusted accordingly. For specific list, please refer to the announcements of the SSE and the CSI or visit the websites of the SSE (www.sse.com.cn), the SZSE (www.szse.cn) and the CSI (www.csindex.com.cn).
The adjustment will enhance the indices' vitality and representation. Statistics show that upon completion of this change, the total market capitalization of the SHSE-SZSE300 Index will cover 83.50% of the total on the SSE and the SZSE, and 68.90% of its floating market capitalization. The total market capitalization and the floating capitalization coverage of the CSI100 will reach 72.45% and 48.32%, respectively. The total market capitalization of the SSE 180 Index will cover 84.75% of the total on the SSE, and its floating capitalization 69.75%. The total market capitalization of the SSE 50 Index will cover 73.28% of the total, and its floating capitalization 50.44%. The total market capitalization of the SSE Dividend Index will cover 12.58% of the total on the SSE, and its floating capitalization 14.20%.
The 2007 semi-annual reports show that the net profits of the constituents of the SHSE-SZSE300 Index and the CSI100 are RMB378.484 billion and RMB337.715 billion, accounting for 84.63% and 75.52% of the total net profit of listed companies on the SSE and SZSE, respectively. The weighted average earnings per share of constituents of the SHSE-SZSE300 Index and the CSI 100 are RMB0.248 and RMB0.2489, respectively, or 17.59% and 18.02% higher, respectively, than the average level of the listed companies on the SSE and SZSE. The net profits of the constituents of the SSE 180 Index, the SSE 50 Index and the SSE Dividend Index are RMB365.758 billion, RMB331.041 billion and RMB68.783 billion, respectively, accounting for 93.04%, 84.21% and 17.50%, respectively, of the total net profit of listed companies on the SSE. The weighted average earning per share of the constituents of the SSE 180 Index, the SSE 50 Index and the SSE Dividend Index are RMB0.2280, RMB0.2284 and RMB0.3571, respectively, or 7.45%, 7.63% and 68.28% higher, respectively, than the average level of the listed companies on the SSE.
In the past year, the constituents of the SHSE-SZSE300 Index and the CSI100 have reached a total dividend of RMB117.332 billion and RMB95.316 billion, respectively, accounting for 87.96% and 71.45% of the total dividend of the A-share listed companies on the SSE and the SZSE. The constituents of the SSE 180 Index, the SSE 50 Index and the SSE Dividend Index have reached a total dividend of RMB92.378 billion, RMB74.07 billion and RMB38.161 billion, respectively, accounting for 86.76%, 69.56% and 35.84% of the total dividend of the A-share listed companies on the SSE.
After the adjustment, price-earnings ratios of the SHSE-SZSE300 Index and the CSI100 are 37.87 and 37.38, respectively, according to the closing prices on December 6, 2007, or 5.70% and 6.92% lower, respectively, than the average market level on the SSE and SZSE. Price-earnings ratios of the SSE 180 Index, the SSE 50 Index and the SSE Dividend Index are 36.39, 35.36 and 27.98, respectively, or 6.79%, 9.43% and 28.33% lower, respectively, than the average market level on the SSE.
