Shenzhen Stock Exchange and Shenzhen Securities Information Co., Ltd. recently announced to make regular adjustment to the sample stocks for SZSE ChiNext Index. It is the fourth adjustment of the year and will come into effect as of the first trading day of October in 2013.
In the adjustment, SZSE ChiNext Index will adjust 9 sample stocks, including taking in Jinlong ME, Avcon and Janus and removing Xindaxin Materials, Geeya Technology and Oxiranchem.
The adjustment will result in enhanced market representativeness for SZSE ChiNext Index. Its coverage of tradable market capitalization will increase from 60.71% to 62.60%. According to figures in 2013 interim reports, the sample stocks after the adjustment will represent 44.73% business revenue and 56.28% net profit in the ChiNext board. On the other hand, the growth rate for constituents will be increased after the adjustment. Growth rate of business revenue and net profit for the first half of 2013 are 30.27% and 15.63% respectively, up 5% and 7% compared to the pre-adjustment figures.
In light of high growth characteristics of the ChiNext board, SZSE ChiNext Index makes regular adjustment to sample stocks on a quarterly basis to ensure the timely inclusion of market new vigor, which distinguishes itself from other indices in the market.
More materials can be found on the website of Shenzhen Stock Exchange (www.szse.cn) and the website of CNINDEX (www.cnindex.com.cn).