Shenzhen Stock Exchange: SINO Real Estate Index Is Launched


Shenzhen Securities Information Co., Ltd. declared on August 20, 2012 to launch SINO Real Estate Index, which is designed to reflect the return of real estate stocks, providing investment targets in industry segments, propelling the development of index fund products. SINO Real Estate Index (Code: 399393, Abbreviation: SINO Real Estate) takes December 31, 2004 as base day, and 1000 points as base point.

Sample space of SINO Real Estate Index is formed by A-share stocks, whose primary industry are financial real estate or secondary industry are real estate in light of CNINFO Industry Classification Standard, from Shanghai and Shenzhen markets. With average current market capitalization and market proportion of thereof average trading volume weighted in the light of 2:1, the stocks from the sample space are ranked; the top 50 stocks will be selected as sample stocks for the index. 15% upper weight is set for specific stock in order to avoid the phenomenon of specific sample stock being overweighed.

SINO Real Estate Index presents the features of high-yield and high beta: from thereof base day to June 29, 2012, the cumulative gain for SINO Real Estate Index reaches 290.01%, with the gain for CNINFO A-share Index of the same period being 200.74%. As the statistics shows, the beta coefficient of SINO Real Estate Index is 1.083, representing feature of strong cyclical stocks and high beta. SINO Real Estate Index is suitable for the investment instrument of band operation.

Sector index is more precise segmental investment instrument that facilitates the investors to seize the gain of specific industry or sector. In the viewpoint of overseas mature market experience, sector index fund products are very significant component of the stock investment market, with its scale only second to that of broad-based market index. In A-share market, since the major broad-based market index has substantial realized productization, sector index fund will become the next investment hot spot. Currently, the market demand for sector index and segment industry index has increased significantly.

It is reported that SINO Real Estate Index is developed by Shenzhen Securities Information Co., Ltd., upon the needs of Guotai Asset Management Co., Ltd., which is actively developing SINO Real Estate Index Classified fund products.