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China Securities Index Co., Ltd. (CSI) has recently announced that it will officially launch the CSI 300 Style Index Series on January 21, 2008. The 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. Further portraying the SHSE-SZSE300 Index from the perspective of style, the CSI 300 Style Index Series will provide investors with new performance benchmark and assets allocation instruments.
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. For details of the index compilation method, please refer to relevant announcements.
By January 7, 2008, the total market capitalization of the CSI 300 Growth Index and the CSI 300 Value Index had covered 55.47% and 41.65% of the total of the SHSE-SZSE300 Index, with their floating capitalization accounting for 47.39% and 44.16%, respectively. The total market capitalization of the CSI 300 Relative Growth Index and the CSI 300 Relative Value Index had covered 55.48% and 44.52% of the total, with their floating capitalization accounting for 52.14% and 47.86%, respectively.
By January 7, 2008, the CSI 300 Growth Index and the CSI 300 Value Index had increased by 486.94% and 487.07% from the base day, and the CSI 300 Relative Growth Index and the CSI 300 Relative Value Index by 451.61% and 438.38%. At the same period, the increase rate of the SHSE-SZSE300 Index is 455.66%.
