Dow Jones Indexes has announced changes in the composition of the Dow Jones China Index Series. Component changes in the Dow Jones China 88, Dow Jones China Offshore 50, Dow Jones China Broad Market, Dow Jones Shanghai, Dow Jones Shenzhen and Dow Jones CBN China 600 indexes will be effective after the close of trading on Friday, March 19, 2010.
The following six companies will be deleted from the Dow Jones China 88 Index, which tracks the largest and most liquid 88 stocks in China's Class-A market and reflects roughly 41.65% of the float-adjusted market capitalisation of both the Shanghai and Shenzhen Class-A markets: Guangshen Railway Co. Ltd. (Travel & Leisure, 601333.SH), Jilin Yatai Group Co. Ltd. (Construction & Materials, 600881.SH), Shanghai International Port Group Co. Ltd. (Industrial Goods & Services, 600018.SH), Heilongjiang Agriculture Co. Ltd. (Food & Beverage, 600598.SH), China CSSC Holdings Ltd. (Industrial Goods & Services, 600150.SH) and China Railway Erju Co. Ltd. (Construction & Materials, 600528.SH). The six companies that are being added to the Dow Jones China 88 Index are: Metallurgical Corp. of China Ltd. (Construction & Materials, 601618.SH), Hebei Iron & Steel Co. Ltd. (Basic Resources, 000709.SZ), Everbright Securities Co. Ltd. (Financial Services, 601788.SH), Gree Electric Appliances Inc. of Zhuhai (Personal & Household Goods, 000651.SZ), Changjiang Securities Co. Ltd. (Financial Services, 000783.SZ) and China Merchants Property Development Co. Ltd. (Real Estate, 000024.SZ).
The number of Shanghai-listed stocks in the Dow Jones China 88 Index will decrease to 62 from 66 components, while the number of Shenzhen-listed stocks will increase to 26 from 22 components. Shanghai-listed stocks represent 79.47% of the free-float market capitalisation of the Dow Jones China 88 Index, compared to 20.53% for Shenzhen-listed companies.
Four components will be replaced in the Dow Jones China Offshore 50 Index, which represents the largest stocks of companies whose primary operations are in mainland China but that trade on exchanges in Hong Kong and the US. The companies that will be deleted from the index are: Shanda Interactive Entertainment Ltd. (Personal & Household Goods, SNDA), China National Building Material Co. Ltd. (Construction & Materials, 3323.HK), Sohu.com Inc. (Technology, SOHU) and Datang International Power Generation Co. Ltd. (Utilities, 0991.HK). The following four companies will be added to the Dow Jones China Offshore 50 Index: China Pacific Insurance Group Co. Ltd. (Insurance, 2601.HK), China Longyuan Power Group Corp. Ltd. (Oil & Gas, 0916.HK), Sinopharm Group Co. Ltd. (Health Care, 1099.HK) and China Minsheng Banking Corp. Ltd. (Banks, 1988.HK).
The number of components in the Dow Jones China Broad Market Index will increase to 1234 from 1197, with 1 deletion and 38 additions. The index will include 1197 A-shares and 37 B-shares. The Dow Jones China Broad Market Index reflects approximately 95% percent of the free-float market capitalisation for both the Shanghai and Shenzhen markets.
The number of components in the Dow Jones Shanghai Index will increase to 729 from 713, with 1 deletion and 17 additions, while the number of components in the Dow Jones Shenzhen Index will increase to 505 from 484 components, with 21 additions. The Dow Jones Shanghai and Dow Jones Shenzhen indexes represent approximately 95% of the free-float market capitalisation of their respective markets.
There will be 25 components replaced in the Dow Jones CBN China 600 Index. The Index reflects roughly 80% of the free-float market capitalization of China's Class-A market.
All changes above were announced after the conclusion of a regular periodical review.
While the Dow Jones CBN China 600 Sector Blue-Chip indexes are typically reviewed semi-annually in June and December, three changes are being announced this quarter. In the Dow Jones CBN China 600 Travel & Leisure Blue-Chip Index, Beijing Bashi Media Co. Ltd. (Travel & Leisure, 600386.SH) will be removed due to its deletion from the Dow Jones CBN China 600 Index, of which the Dow Jones CBN China 600 Travel & Leisure Index is a subset. The company will be replaced by Science City Development PCL (Travel & Leisure, 000975.SZ). In the Dow Jones CBN China 600 Construction & Materials Blue-Chip Index, Nanjing Xingang High-Tech Co. Ltd. (Construction & Materials, 600064.SH) will be removed due to the company being reclassified from ICB supersector, Construction & Materials to Real Estate. The company will be replaced by Gansu Qilianshan Cement Group Co. Ltd. (Construction & Materials, 600720.SH). In the Dow Jones CBN China 600 Technology Blue-Chip Index, BOE Technology Group Co. Ltd. (Technology, 000725.SZ) will be removed due to the company being reclassified from ICB supersector, Technology to Industrial Goods & Services. The company will be replaced by China Great Wall Computer Shenzhen Co. Ltd. (Technology, 000066.SZ).
The Dow Jones CBN China 600 Sector Blue-Chip Indexes were launched on September 8, 2005 as subset of the Dow Jones CBN China 600 Index.