Shenzhen Stock Exchange (SZSE) and Shenzhen Securities Information Co., Ltd. recently announced that they would make periodical adjustments to the sample stocks of SZSE indexes such as SZSE Component Index, ChiNext Index, SZSE 100 Index and SZSE SME Index according to index compilation rules. The adjustments will be officially implemented on 16 December 2019.

For SZSE Component Index, 28 sample stocks will be replaced, adding QRCB (002958), Pharmaron (300759), etc. and deleting Cangzhou Mingzhu (002108), Tatwah (002512), etc. For ChiNext Index, 10 sample stocks will be changed, adding Lakala (300773), DPtech (300768), etc. and deleting Huayi Brothers (300027), Hybio Pharmaceutical (300199), etc. For SZSE 100 Index, 10 sample stocks will be updated, adding Flush Info (300033), Gujing Distillery (000596), etc. and deleting SGMG (002110), DHC (002065), etc. For SZSE SME Index, 7 sample stocks will be altered, adding Zhengbang Technology (002157), QRCB (002958), etc., and deleting Eternal Asia (002183), BDStar Navigation (002151), etc. For SZSE Small/Mid Cap Innovation Index, 70 sample indexes will be shuffled, adding Fingu (002194), Allmed (002950), etc. and deleting Jidong Equipment (000856), Yongan Pharmaceutical (002365), etc.

After the periodical adjustments, the market capitalization coverage rates of SZSE core indexes will increase from the previous period, of which that of SZSE Component Index will be 68%, that of ChiNext Index 51% and that of SZSE 100 Index 40%, further enhancing the market representativeness. The weight of Main Board, SME Board and ChiNext Board sample stocks in SZSE Component Index will be 40%, 38% and 22% respectively, close to the actual board distribution on the multi-tiered market of SZSE. The corresponding weight of SZSE 100 Index will be 50%, 32% and 18% respectively, focusing on excellent blue chips on the three boards.

Data show that after the sample adjustments, the industry distribution and industrial structure of SZSE core indexes will further demonstrate the capability of the Shenzhen market in serving emerging industries and new economy. The weight of sample stocks of strategic emerging industries of SZSE Component Index, SZSE 100 Index and SZSE SME Index will be 58%, 55% and 59% respectively, and the corresponding proportion of ChiNext Index will be as high as 79%. In terms of industry distribution, the dominant position of information technology in SZSE core indexes has become increasingly obvious, and relevant sample weight has increased. Its weight in SZSE Component Index, SZSE SME Index and ChiNext Index are 24%, 40% and 27% respectively, making it the industry with the greatest weight in the three indexes, and its weight in SZSE 100 Index is 19%, only second to that of consumer discretionary.

See the official website of SZSE or CNINDEX (www.cnindex.com.cn) for the detailed list of sample stocks of relevant indexes subject to periodical adjustments.