Shanghai Stock Exchange: Commodity Equity, Emerging Industries Indices to be launched

Shanghai Stock Exchange: Commodity Equity, Emerging Industries Indices to be launched


Three indices, including the SSE Commodity Equity Index, SSE Emerging Industries Index and CSI Emerging Industries Index, will be published in due form on April 30, 2010, according to a recent announcement of the Shanghai Stock Exchange (SSE) and China Securities Index Co., Ltd. (CSI).

In recent years, the wild price volatility of block commodity worldwide has brought fierce challenges to China's economic development, business operation and investors' decision-making. Closely related with the prices of block commodity, the stock prices of companies engaging in block commodity have drawn wide attention on the securities market. The preparation and development of the SSE Commodity Equity Index will not only, by showcasing the changes of stock prices of the listed companies engaging in block commodity, provide a performance comparison benchmark and analysis tool for investing in these stocks, but also reflect the anticipation of investors on block commodity prices. According to the published index scheme, the index is composed of 50 companies with large market capitalization and ample liquidity in such industries as comprehensive oil and natural gas, exploration and production of oil and gas, refining and marketing, coal, nonferrous metals, mining, chemical fertilizers and pesticides, agricultural products, forest products and paper products. Statistics show that the latest total market capitalization and free floating market capitalization of the index have respectively reached RMB4,735 billion and RMB731.8 billion, accounting for 93% and 80% of those of the socks of the same category on the Shanghai market, indicating the good representativeness of the index.

The SSE and CSI Emerging Industries Indices aim to mirror the development and change of the stocks belonging to strategic emerging industries integrating emerging technologies and industries. According to the published index scheme, the strategic emerging industries, mainly covering new energy, biomedicine, new materials and electrical automobile, feature stable and promising market demand of products, good economic and technological benefits and the capability of leading the rise of a number of industries. The SSE Emerging Industries Index selects the 50 most representative companies in the emerging industries on the Shanghai market as its constituents, while the CSI Emerging Industries Index chooses 100 on the Shanghai and Shenzhen markets. Both of the indices adopt the equal weight method. Statistics show that the SSE and CSI indices boast RMB1096.5 billion and RMB1771.9 billion total market capitalizations, and RMB469.5 billion and RMB839 billion free floating market capitalizations, respectively, both accounting for more than 85% of those of the companies of the same category in the constituent universe, indicating their good representativeness.

It is learned that fund companies are developing ETF and index fund products based on the three indices.