To comprehensively reflect the price fluctuation trend of corporate bonds and convertible bonds with detachable trade on the exchanges, the Shanghai Stock Exchange (SSE) and China Securities Index Co., Ltd. (CSI) will launch the SSE Corporate Bond Index, the SSE Detachable Convertible Bond Index, the CSI Corporate Bond Index and the CSI Detachable Convertible Bond Index from November 19, 2008. Among them, the two SSE indices' constituents are composed of the corporate bonds and the convertible bonds with detachable trade on the SSE, while the two CSI indices' constituents are composed of the corresponding bonds on the SSE and the Shenzhen Stock Exchange (SZSE).
Both the corporate bonds and the detachable convertible bonds have seen active trading, with their total turnover on the SSE and the SZSE from early this year till the end of September up to RMB87.96 billion (with RMB73.32 billion on the SSE), or nearly 70.2% of the total turnover of all enterprise bonds on the two exchanges. Therefore, it is significant to independently reflect the conditions of the two types of bonds. In addition, separated market indices will enhance the innovation of the existing bond products and the development of the bond market. It is of great significance to launch the four indices, providing more comprehensive market analysis tools to the investors and promoting the bond market development.
According to the published index scheme, the above four indices will have the same base day of December 31, 2007 and the same base point of 100. By October 31, 2008, the SSE Corporate Bond Index, the SSE Detachable Convertible Bond Index, the CSI Corporate Bond Index and the CSI Detachable Convertible Bond Index had closed at 113.56, 112.95, 112.29 and113.02 points, respectively.
For the compiling methods and details about the above indices, please refer to the websites of the SSE and the CSI.
