On November 27, SZSE and its wholly-owned subsidiary Shenzhen Securities Information Co., Ltd. (hereinafter referred to as “SSIC”) released an announcement saying that according to the index methodology, after taking into full account the representation of market capitalization, securities liquidity, operating compliance and other factors of SZSE-listed companies, regular adjustments will be made to the constituents of the Shenzhen Component Index, the ChiNext Index and the Shenzhen 100 Index (hereinafter collectively referred to as the “core indices of SZSE”). The adjustment will be officially implemented on December 11, 2023. The Shenzhen Component Index will replace 23 constituents and transfer in 10 companies listed on the Main Board and 13 companies listed on the ChiNext Board. The ChiNext Index will replace 6 constituents. The Shenzhen 100 Index will replace 3 constituents, and transfer in 2 companies listed on the Main Board and 1 company listed on the ChiNext Board.

Steadily improving the ability to serve high-quality economic development. After the adjustment, under the Shenzhen Component Index as the benchmark index dominated by the manufacturing industry in China's multi-tiered capital market, the weights of manufacturing industry and real economy industry account for 74% and 92% respectively. This further reflects the effect of the capital market serving high-quality economic development. Under the ChiNext Index comprehensively covering strategic emerging industries, the relevant constituents account for 92% in weight. Among them, next generation information technology, new energy vehicles and biological industry have their wights accounted for 23%, 22% and 22% respectively, showing prominent advantages. Under the Shenzhen 100 Index playing a significant role of “main engine” of consumption, the consumption industry accounts for 29% in weight. The net profit of its relevant sample companies in the first three quarters of 2023 increased by 17% year on year. The proportion of listed companies in key areas, such as advanced manufacturing, digital economy and green and low-carbon development, in constituents of the core indices of SZSE increased steadily, reaching the weights of 64%, 84% and 69% of the Shenzhen Component Index, the ChiNext Index and the Shenzhen 100 Index, respectively.

Continuously strengthening the momentum for R&D innovation. After the adjustment of the Shenzhen Component Index, a weight of 30% of the sample companies (i.e. 100 ones) are identified by the Ministry of Industry and Information Technology as single champions in the manufacturing industry. The R&D investment of the above companies in the first three quarters increased by 21% year on year, reflecting the accelerated transformation of China’s manufacturing industry from “made in China” to “China’s intelligent manufacturing”. The ChiNext Index gathers a group of leading enterprises in the field of science and technology. A number of 38 of its sample companies engage in strategic science and technology related industries such as artificial intelligence, integrated circuits and life and health, with an average R&D intensity of 15%. The Shenzhen 100 Index focuses on large-cap blue-chip stocks while highlighting innovation characteristics. The R&D investment of its sample companies in the first three quarters was nearly CNY 200 billion, up 23% year on year, and the average number of patents held was 1,555, nearly 10 times the average level of A-share companies.

Prominent leading function of market characterization.  Since the implementation of the comprehensive registration-based IPO system, the core indices of SZSE have continued to absorb high-quality listed companies. After the adjustment, the number of sample companies in the Shenzhen Component Index under the registration-based IPO system rises to 34, and the number of sample companies in the ChiNext Index under the registration-based IPO system is 17. The Shenzhen Component Index covers 63% of the total A-share market value of SZSE market. Among them, the companies listed on the Main Board account for 69% in weight and the companies listed on the ChiNext Board account for a wight of 31%, indicating good market representation. The ChiNext Index maintains the high growth attribute. In the first three quarters of 2023, its operating income increased by 16% year on year and net profit increased by 9% year on year. In particular, the operating income and net profit of sample companies in the green and low-carbon development field increased by 32% and 54% year on year respectively, showing very bright performance. The Shenzhen 100 Index gathers the core assets of SZSE market, with the rate of return on net assets reaching 13%. The net profit of 70% of its sample companies ranks in the top three in their respective subsectors, indicating the steady profitability and good growth of leading enterprises.