● Eligible Securities

(1)To be included in the index, a security must be listed on Shenzhen Stock Exchange for more than 6 months. (Unless its total market capitalization and free-float market capitalization comprehensively ranks within the top 10 among all stocks listed on Shenzhen Stock Exchange).
(2) ST or *ST stocks are excluded from the index universe.
(3) Eligible candidate companies shall not be penalized, either economically or administratively, by CSRC due to any violation of laws and regulations in the most recent year.  

● Selection Criteria

(1) calculates the average total market capitalization, average free-float market capitalization, and average turnover during the previous six months for all the eligible stocks in the stock universe (as the percentage of all the SZSE A-shares).
(2) Ranks the stocks in the stock universe in descending order according to a 1:1:1 weighted average of the above three measures.
(3) Selects those which rank in the top 500 as constituent stocks of the SZSE Component Index.

● Weighting

The weighting of a constituent in the SZSE Component Index is determined by its actual value of free-float market capitalization. No capping methodology is applied to the SZSE Component Index.

● Regular Reviews

The regular reviews are semi-annually implemented on the first trading day in January and July each year. The review result is published on the first trading day of the second integral trading week of December (for the January review) and June (for the July review) prior to the implementation of the review.