Shanghai Stock Exchange and China Securities Index Co., Ltd.: Seven new indices to be launched

Shanghai Stock Exchange and China Securities Index Co., Ltd.: Seven new indices to be launched

19/01/10

The Shanghai Stock Exchange (SSE) and China Securities Index Co., Ltd. (CSI) have recently announced that a series of new indices would be officially launched on February 9, 2010, namely SSE Industry Top Index (SSE Industry Top), CSI Industry Top Index (CSI Industry Top), CSI Local State-owned Enterprises Composite Index (CSI L SOEs), CSI Local State-owned Enterprises 100 Index (CSI L SOEs 100), CSI State-owned Enterprises Composite Index (CSI SOEs), CSI State-owned Enterprises 200 Index (CSI SOEs 200) and CSI Galaxy 99 Index (Galaxy 99).

It is learnt that both SSE Industry Top and CSI Industry Top constituents are selected from stocks of companies with large market capitalization and outstanding business income and profit performances in the industries. These firms, typical of blue chips, win themselves a name of "top enterprise" for their large scale, big market share and great influence on the development trend and ebb and flow of the industry as a whole. According to the latest statistics, the market capitalizations of SSE Industry Top and CSI Industry Top are RMB8.95 trillion and RMB10.22 trillion, or 49.02% of that of A shares on the SSE and 42.45% of that of A shares on both the SSE and the Shenzhen Stock Exchange (SZSE), respectively. Some fund companies have been reported to commit themselves to the development of ETF products of SSE Industry Top.

CSI L SOEs 100, made up of stocks of 100 representative local state-owned enterprises listed on the SSE and the SZSE, demonstrates the overall performance of the stocks of the large-scale local state-owned enterprises listed on the SSE and the SZSE and provides an underlying instrument for the development of relevant indexation investment product. CSI SOEs 200, consisting of constituents of CSI L SOEs 100 and CSI Central State-owned Enterprises 100 Index, showcases the overall performance of the stocks of all state-owned enterprises listed on the two markets. According to the latest statistics, over 640 local state-owned enterprises listed on the SSE and the SZSE boast a market capitalization of RMB6.97 trillion, or about 28.82% of that of A shares on the two markets, with a floating market capitalization accounting for nearly 31.43% of that of A shares on the two markets. The market capitalization of CSI L SOEs 100 is RMB4 trillion with a floating market capitalization of RMB2.7 trillion while that of CSI SOEs 200 is RMB14.8 trillion with a floating market capitalization of RMB9.15 trillion.

Galaxy 99, a strategy index developed upon the demand of China Galaxy Securities Company Limited, selects from CSI 300 Index 99 stocks with large market capitalization and high growth potential as its constituents. Judging by the past performance, it is able to realize excess earnings by tracing the performance of CSI 300 Index.

For compilation methods and details of the above indices, please refer to the websites of the SSE (www.sse.com.cn) and CSI (www.csindex.com.cn).