Shenzhen Stock Exchange: SZSE 1000 Index and other indices issued and SZSE scale index system established

Shenzhen Stock Exchange: SZSE 1000 Index and other indices issued and SZSE scale index system established

01/09/2011

Shenzhen Stock Exchange and Shenzhen Securities Information Co., Ltd. declared recently to issue SZSE 200 index, SZSE 700 index, SZSE 1000 index, SZSE 700 style index and SZSE 1000 style index on September 1. The SZSE 200 index, SZSE 700 index and SZSE 1000 index, jointly with the SZSE 100 index and the SZSE 300 index, constitute the SZSE scale index system; and the SZSE 700 style index and SZSE 1000 style index, together with the SZSE 300 style index, constitute the SZSE style index system.

According to the compilation scheme, the SZSE 100 is specified as large-cap index, SZSE 200 as mid-cap index, SZSE 700 as small-cap index, SZSE 300 as large- and mid-cap index, and SZSE 1000 as large-, mid- and small-cap index.

The constituent selection method of the SZSE 1000 index is as follows: the float market capitalization and the turnover are weighted by 2:1 and ranked in descending order, and the top 1000 Shenzhen A-share stocks are selected as the constituents. Excluding the SZSE 300 sample stocks, the remaining 700 stocks in the SZSE 1000 sample stocks are selected to constitute the SZSE 700 index. Excluding the SZSE 100 sample stocks, the 200 stocks in the SZSE 300 sample stocks are selected as the constituents of SZSE 200 index.

As the latest data indicates, the float market capitalization coverage rate of the SZSE 100 index, the SZSE 200 index and the SZSE 700 index on the A-share stock market is 45.5%, 22.5% and 28.4% respectively, reflecting that the market capitalization of Shenzhen market is in low and unchanged trend, with the majority stocks being the mid- and small-cap stocks. As of June 30, 2011, the annualized rate of return of SZSE 200 index, SZSE 700 index and SZSE 1000 index since the base date is 20.9%, 25.1% and 23% respectively.

SZSE 700 style index includes 700 growth index and 700 value index. SZSE 1000 style index includes 1000 growth index and 1000 value index. The SZSE 700 style index and the SZSE 1000 style index are derived from SZSE 700 index and SZSE 1000 index respectively and are comprised of the top 1/3 sample stocks of growth factors and value factors.

The code of SZSE 200 index, SZSE 700 index and SZSE 1000 index is 399009, 399010 and 399011 respectively, and the base dates of them are all December 31, 2004. The code of 700 growth index, 700 value index, 1000 growth index and 1000 value index is 399628, 399629, 399630 and 399631 respectively, and the base dates of them are all June 30, 2010. The base points of the above 7 indices are all 1000 points.