.jpg)
The CSI 300 Style Index, the construction scheme of which was announced by China Securities Index Co., Ltd. (CSI) on January 8, 2008, is officially released today upon soft operation for a period. The index series include four indices, namely, the CSI 300 Growth Index, the CSI 300 Value Index, the CSI 300 Relative Growth Index and the CSI 300 Relative Value Index. The base day of the indices is December 31, 2004, with the base point of 1,000. Investors can learn the indices' performance from the market terminals including Qianlong, Great Wisdom, Reuters and Bloomberg or visit the Shanghai Stock Exchange's or the CSI's website for details.
According to the published index scheme, the CSI 300 Style Index Series will adopt 7 factors to measure a company's growth and value. Factors that measure the growth include the growth rate of major business income in the past 3 years, the growth rate of net profit and the internal growth rate in the past 3 years (internal growth rate = return on net assets [1 - dividend payment rate]). Factors that measure the value include the dividend yield (D/P), net asset value per share/price (B/P), net cash flow per share/price (CF/P) and earning per share/price (E/P).
Both the CSI 300 Growth Index and the CSI 300 Value Index consist of 100 constituents. The former is composed of 100 stocks with the most remarkable growth among the constituents of the SHSE-SZSE300 Index, and the latter 100 stocks with most distinctive value among the constituents. The CSI 300 Relative Growth Index and the CSI 300 Relative Value Index consist of all the constituents of the SHSE-SZSE300 Index. The market capitalization of the constituents is distributed to the CSI 300 Relative Growth Index and the CSI 300 Relative Value Index according to a certain style weight.
By January 18, 2008, the CSI 300 Growth Index and the CSI 300 Value Index had increased by 465.38% and 474.63% from the base day, and the CSI 300 Relative Growth Index and the CSI 300 Relative Value Index by 433.60% and 428.87%. At the same period, the increase rate of the SHSE-SZSE300 Index is 441.45%.
