Shanghai Stock Exchange Corporate Bond 30, Overseas-listing A Shares, State-Owned 100 Indices launched

Shanghai Stock Exchange Corporate Bond 30, Overseas-listing A Shares, State-Owned 100 Indices launched

18/12/09

The Shanghai Stock Exchange (SSE) and China Securities Index Co., Ltd. (CSI) have recently announced that nine new indices will be launched on the first trading day of 2010, namely, the SSE Corporate Bond 30 Index, the SSE Overseas-listing A Shares Index, the SSE Local State-owned Enterprises 50 Index, the SSE State-owned Enterprises 100 Index, the SSE Large & Mid & Small Cap Growth, Value, Relative Growth and Relative Value Indices and the SSE Shanghai Enterprises Index. All these indices will provide more targets for such index products as index funds and ETFs.

The SSE Corporate Bond 30 Index, the first real-time bonds index in China, is composed of 30 high-quality, large-scale and high-liquidity enterprise bonds from the SSE. The index, giving priority to the liquidity of the constituents, has adopted the weight restriction rule to reduce the influence of some constituents with large issuance volumes on the index. Besides, the duration matching rule is also designed to keep the deviation of the duration for the index and that for the market at or below 10%. The SSE Corporate Bond 30 Index is significant for the bond market development as it offers high-quality targets for bond ETFs and other bond products. On December 16, 2009, the index closed at 100.38, 0.38% higher than the beginning of the year.

A few overseas listed companies, upon returning to the A-share market in succession since 2006, have become an important sector in the A-share market and exerted a growing influence on the market. The constituents of the SSE Overseas-listing A Shares Index are listed companies' stocks in the SSE 180 Index that are simultaneously listed on the SSE and exchanges outside the mainland. The 37 constituents boast the A-share total market capitalization and negotiable market capitalization of RMB9.1977 trillion and RMB4.5783 trillion, respectively, accounting for 50.38% and 40.79% of that of the SSE, respectively.

The SSE State-owned Enterprises 100 Index, composed of 50 constituents of the SSE Central SOEs 50 Index and 50 of the SSE Local State-owned Enterprises 50 Index, could reflect the overall performance of the listed companies of state-owned enterprises in Shanghai. Constituents of the SSE Local State-owned Enterprises 50 Index are 50 most typical stocks selected from listed companies in Shanghai that are controlled by local state-owned assets supervision and administration commissions, governments and state-owned enterprises.

The compiling method of the SSE Large & Mid & Small Cap Style Indices, basically the same with that of the SSE 180 Style Indices, is to select among the SSE Large & Mid & Small Cap Index the stocks of 150 companies with most remarkable growth features as the constituents of the growth indices, and the stocks of 150 companies with most remarkable value features as the constituents of the value indices. In terms of the SSE Shanghai Enterprises Index, with the constituent universe covering companies registered in Shanghai, have the constituents of 50 companies taking the lead in liquidity, scale and representativeness to reflect the overall market performance of Shanghai-based companies' stocks.