SZSE and its wholly-owned subsidiary Shenzhen Securities Information Co., Ltd. (SSIC) released an announcement saying that according to the index methodology, after taking into full account of factors such as the market capitalization representativeness, securities liquidity and operation compliance of SZSE-listed companies, SZSE and SSIC will adjust the constituent sample stocks of Shenzhen Component Index, ChiNext Index and Shenzhen 100 Index (collectively referred to as the “1+2” core indexes or core indexes) regularly. The adjustment will be officially made on 12 December 2022.

SZSE and SSIC are actively building the “1+2” core indexes system of the SZSE market to better serve the building of self-reliance and strength in science and technology and the high-quality development of economy. After this adjustment, the proportion of strategic emerging industries and “high growth and high innovation” enterprises in the sample stocks of the core indexes will increase steadily, further strengthening the core indexes’ capacity of showcasing economic transformation and upgrading.

Shenzhen Component Index connects strongly to “Made in China” to better serve the real economy

Shenzhen Component Index is the benchmark of the SZSE market. In this adjustment, 26 of its sample stocks will be replaced and 15 ChiNext companies and 11 Main Board-listed companies will be introduced. Among the new samples, there will be 27 new companies that are listed for fewer than two years. According to the sample statistics after this adjustment, as at 25 November 2022, the total market capitalization coverage of Shenzhen Component Index to the Shenzhen A-share market was 65%; and there were 354 Main Board-listed constituent stocks, a weight of 70%, and 146 ChiNext Board-listed sample stocks, a weight of 30%.

Shenzhen Component Index is the benchmark index that features the highest ratio of manufacturing stocks in China stock market. After this adjustment, the weight of manufacturing samples of Shenzhen Component Index will reach 74%. This will further strengthen its strong bonding with “Made in China” and its capability to reflect the real economy. The weight of samples from strategic emerging industries will be raised to 67%, and that from the three key areas of advanced manufacturing, digital economy and green and low-carbon development will reach 65%.

ChiNext Index fully shows “innovation and growth”; the green industry demonstrates strong growth

Since their launch more than two years ago, the ChiNext Board reform and the pilot project of the registration-based IPO system have continuously injected vitality into the ChiNext market, showcasing more obvious aggregation effect of innovative, productive and creative enterprises and conventional industries integrated with new technology, new industry, new business form and new model and strategic emerging industries in ChiNext Index. In this adjustment, 10 sample stocks of ChiNext Index will be replaced. After this adjustment, high-tech companies will take up 95%, strategic emerging industries 90%, and the three key areas of advanced manufacturing, digital economy and green and low-carbon development 83%.

According to their quarterly reports in the first three quarters of 2022, the R&D expenditures of the new samples in the first three quarters totaled CNY 497.8 billion, an increase of 27% year on year; return on equity recorded 13%, operating income increased by 42% year on year, and net profit rose 23% year on year, maintaining high growth and good profitability. The development momentum of the green industry was particularly strong. The sample stocks from new energy vehicles and new energy industries saw their net profits rise 108% and 54% year on year respectively.

Shenzhen 100 Index fully represents “innovative blue chips” and plays a significant demonstration and leading role

Shenzhen 100 Index, with a clear feature of “innovative blue chips”, is an important index representing leading innovation-oriented enterprises. In this adjustment, five of the sample stocks of Shenzhen 100 Index will be replaced. After this adjustment, strategic emerging industries will take up 73% and the three major areas of advanced manufacturing, digital economy and green and low-carbon development 70%. Shenzhen 100 Index has gathered core assets of the SZSE market, with over 90% of its samples being leading players in segment industries. The sample stocks of Shenzhen 100 Index have continued the fine tradition of distributing dividends. Since the beginning of 2022, 95 companies have paid out dividends totaled CNY 176.3 billion and they account for 45% of the whole SZSE market. Among them, 82 companies have paid out dividends for three years straight.

The sample stocks of Shenzhen 100 Index lead the A-share market in overall ESG performance and they have achieved remarkable results in serving the carbon peak and carbon neutrality strategy. According to CNI ESG Ratings results, 92 companies of Shenzhen 100 Index samples have obtained the medium-high rating of BBB or higher, among which 23 companies have obtained the highest rating of AAA.