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Shenzhen Stock Exchange and Shenzhen Securities Information Co., Ltd. announced today that sample stocks of SZSE Component Index (Code:399001, Abbreviation: SZSE Component) would be expanded as of May 20, 2015, as to reflect the fruit of multi-layer capital market development, and depict comprehensively the operation feature of Shenzhen securities market. After the expansion, the number of the Index sample stocks will be expanded from 40 to 500, while the Index’s code, abbreviation, and rule of selecting sample stocks remain unchanged.
After the sample expansion, the market representativeness of SZSE Component Index increases substantially. The total market capitalization of new SZSE Component is approximately CNY13 trillion, with up 60% of market capitalization coverage, which is close to that of benchmark indices in domestic markets and overseas markets.
The distribution of sample stocks of SZSE Component Index in different boards becomes more equilibrium and reasonable. After the expansion, the weights of sample stocks on the Main Board, the SME Board and the ChiNext Board are 48%, 35%, 17% respectively, close to the market capitalization percentage of each board in Shenzhen Market. As for the number of sample stocks in different boards, 211 are on the SME Board, and 90 on the ChiNext Board, totaling 301 stocks, which occupy 60% of the index sample stocks. Thus the Index substantially represents the small-and-medium size growth enterprises.
The industry structure of SZSE Component Index is identical to that of Shenzhen Market. After the expansion, the weights of financial industry and real estate industry drop from 31% to 14%; meanwhile, the weight of information technology industry, which has become the biggest weighted industry, increases from 14% to 20%. The new SZSE Component Index is different from Shanghai Composite Index and CSI 300 Index in terms of industry structure, thus reflects the structure feature of Shenzhen Market.
