Shenzhen Securities Information Co., Ltd. released an announcement, saying that according to Index Methodologies, the constituents for SZSE series core indices including SZSE Component Index, ChiNext Index and SZSE 100 Index would be adjusted periodically. The adjustment will be implemented on 14 December 2020.

For the SZSE Component Index, 31 constituents will be replaced. Edifier (002351), Shanghai Sinyang (300236), etc. will be added to replace CHSR (000008), UniStrong (002383), etc. For the ChiNext Index, six constituents will be replaced. CAPCHEM (300037), YKYL (300677), etc. will be added to replace GOSUN (300098), Watertek (300324), etc. For the SZSE 100 Index, nine constituents will be replaced. Maxscend (300782), Arawana (300999), etc. will be added to replace Tianqi Lithium (002466), Wanda Film (002739), etc.

After the adjustment, the market representativeness of the core indices of SZSE will be further enhanced.

The constituents further focus on the distinct SZSE-listed companies and the overall performance of growth is outstanding. The market cap coverage rates of SZSE Component Index, ChiNext Index and SZSE 100 Index will reach 70%, 53% and 41% respectively. According to the data of the 2020 Q3 report, the net profit of the constituents for SZSE Component Index, ChiNext Index and SZSE 100 Index after the adjustment rose by 13%, 39% and 20% year on year, higher than the average level of SZSE-listed A-shares in the corresponding period.

In recent years, the characteristics of the industry distribution and industrial structure of the core indices of SZSE have become more distinct and the advantages of strategic emerging industries more prominent, fully demonstrating the capabilities of SZSE in supporting technological innovation and serving innovation-oriented enterprises and startups. After the adjustment, the weights of strategic emerging industries in SZSE Component Index and SZSE 100 Index will be 58% and 59% respectively, and the corresponding weight in ChiNext Index will be 81%. In terms of industry distribution, information technology, optional consumption and major consumption will top the constituents for SZSE Component Index, weighting 24%, 14% and 13% respectively. For ChiNext Index, the top three industries will be pharmaceutical & health, information technology and industry, weighting 30%, 25% and 20% respectively. For SZSE 100 Index, the top three industries will be information technology, optional consumption and major consumption, weighting 23%, 18% and 18% respectively.

For the detailed list of adjusted constituents for relevant indices, please refer to the official website of SZSE or CNI Index (www.cnindex.com.cn).