Changes Are a Result of a Regular Review of the Indexes
BEIJING, December 22, 2005 – Dow Jones Indexes today announced changes in the composition of the Dow Jones China Index Series (Dow-China Indexes). The component changes in the Dow Jones China Total Market (Dow-China Total Market), Dow Jones Shanghai (Dow-Shanghai), Dow Jones Shenzhen (Dow-Shenzhen) Index, and Dow Jones CBN China 600 Index will be effective on January 4, 2006.
On January 4, 2006, with 17 additions and 17 deletions, the number of components in the Dow-China Total Market will remain unchanged with 1159 components, which include 1095 A-shares and 64 B-shares. The number of components in the Dow-Shanghai Index will increase to 710 from 708, with 10 additions and 8 deletions, and the number of components in the Dow-Shenzhen index will decrease to 449 from 451, with 7 additions and nine deletions. The Dow-Shanghai index represents roughly 95% of the free float market capitalization of Shanghai market, and the Dow-Shenzhen index represents roughly 95% of the free float market capitalization of Shenzhen market. The Dow-China Total Market Index reflects roughly 95% percent of the free float market capitalization for both the Shanghai and Shenzhen markets.
The composition of the Dow Jones China 88 Index, which tracks the largest and most liquid 88 stocks in China’s Class-A market, will remain unchanged. The Dow Jones China 88 Index reflects roughly 36.40% of the total free float market capitalization of both the Shanghai and Shenzhen markets.
Effective on January 4, 2006, 20 components will be replaced in the Dow Jones CBN China 600 Index. The Dow Jones CBN China 600 Index has been launched on September 6, 2004 and reflects roughly 80% of China’s total free float market capitalization.
Changes are being announced today after the conclusion of a regular quarterly component review.
Dow Jones Indexes also completed the regular semiannually review for the Dow Jones CBN China 600 Sector Blue-Chip Indexes, which were launched on September 8, 2005 as subsets of the Dow Jones CBN China 600 Index. As a result of this regular review, the changes for the 14 sectors are as follows:
|
Add and Delete list of Dow Jones CBN China 600 Sector Blue-Chip Indexes |
||||
|
|
Previous number of components |
Additions |
Deletions |
Number of components after review |
|
Automobile & Parts |
15 |
1 |
1 |
15 |
|
Basic Resources |
15 |
1 |
1 |
15 |
|
Chemicals |
15 |
3 |
3 |
15 |
|
Construction & Mater |
15 |
1 |
1 |
15 |
|
Financials |
15 |
1 |
1 |
15 |
|
Food & Beverage |
15 |
3 |
3 |
15 |
|
Health Care |
15 |
1 |
1 |
15 |
|
Industrial Goods & Services |
15 |
2 |
2 |
15 |
|
Oil & Gas |
8 |
2 |
0 |
10 |
|
Personal & Household |
15 |
1 |
1 |
15 |
|
Retail |
15 |
1 |
1 |
15 |
|
Technology |
15 |
3 |
3 |
15 |
|
Travel & Leisure |
14 |
2 |
1 |
15 |
|
Utilities |
15 |
2 |
2 |
15 |
All changes are effective on January 4, 2006.
Aimed at providing investors in China and around the world with an accurate tool for tracking equity performance in China’s growing stock markets, the Dow-China Indexes are constructed with the same strict standards used to develop the Dow Jones Global Indexes.
Float-adjusted shares, which exclude all state-owned shares and unlisted employee shares, are used for stock selection and index calculation, in order to provide an accurate representation of the shares that are actually available to investors for trading. Dow Jones Indexes excludes block holdings of individuals, other companies or governments that exceed 5% of total market value in calculating free-float for selection of component stocks.
The Dow-China 88, Dow-China Total Market, Dow-Shanghai and Dow-Shenzhen were launched May 27, 1996 to commemorate the 100th anniversary of the world’s most widely reported market indicator, the Dow Jones Industrial Average, which was launched in 1896. All four indexes in the Dow-China Index series have a base value of 100 on Dec. 31, 1993.
