In order to enhance the index investability, Shenzhen Securities Information Co., Ltd. decided to revise the methodologies of CNI Commodities Producer Index and CNI Agriculture Index.
1. CNI Commodities Producer Index
A) Adjust the index name and short name to “CNI Energy Metals Index” and “Energy Metals”.
B) Modify the index universe to “Company business classified as the mining, extraction, trading, and recycling of energy metals, including but not limited to lithium, cobalt, nickel, rare earth, etc.”
C) Adjust the number of constituents to 50.
D) Revise the weighting method to “The weight of individual constituent is set no more than 15% and the total weight of the top 5 constituents does not exceed 60% in each periodic review.”
The rest of the methodology remains the same.
2. CNI Agriculture Index
A) Adjust the index name and short name to “CNI Grain Industry Index” and “CNI Grain”.
B) Modify the index universe to “Company business classified as the grain industry, including agricultural supplies (seeds, fertilizers, pesticides, and agricultural machines), grain planting, farmland irrigation and water conservancy, product trading of processed grain and oil, etc.”
C) Revise the selection method and adjust the liquidity screening criterion to “Rank the stocks in the index universe by daily average trading value in descending order and remove bottom 20% stocks.”
D) Revise the weighting method to: “Based on the company business type, divide the index constituents into two groups. The adjustment factor to calculate the free-float market cap of respective constituent from the seed and grain planting industries is set by 1, and the weight is capped at 15%. The adjustment factor to calculate the free-float market cap of respective constituent from the other industries is set by 0.5, and the weight is capped at 5%. Also, the total weight of the top 5 constituents does not exceed 60%.”
The rest of the methodology remains the same.
The revision will be implemented on July 28, 2022. Please refer to the official website of CNI Index (www.cnindex.com.cn) for more details.
Shenzhen Securities Information Co., Ltd.
July 25, 2022