Shenzhen Stock Exchange (SZSE) and Shenzhen Securities Information Co., Ltd. recently announced to issue SZSE Small and Medium Enterprise Innovative Index (Code: 399015, Abbreviation: SZSE SME Inno) on March 24 2015, in a move to reflect the overall performance of stocks of different sizes in the Shenzhen market and provide the market with more analysis tools and performance benchmark. The index takes December 30 2011 as the base date and 1000 points as the base value.
Sampling from the 1000 constituents of SZSE 1000 Index after removing the 500 constituents of SZSE Component Index, the Index is a good benchmark to mirror the movements of small and medium innovative enterprises in the Shenzhen market. The constituents will be adjusted correspondingly when SZSE 1000 Index and SZSE Component Index make sample adjustments.
The Shenzhen securities market is featured with multiple tiers and innovative listed companies, some of which have become the bellwethers in the country’s economic transition and upgrading. According to statistics, SZSE Small and Medium Enterprise Innovative Index has reported an accumulated income of 116% for the period from the base date to the end of February 2015, whereas SSE Composite Index and SZSE Composite Index reported 51% and 88% respectively during the same period.
SZSE Small and Medium Enterprise Innovative Index shows equilibrium distribution among different boards of the market, including 145 constituents listed on the main board, 251 constituents listed on the SME board, and 104 constituents listed on the ChiNext board. In terms of industrial structure, the consumer industry (including consumer discretionary and consumer staples) weights the heaviest (22%), and emerging industries, such as consumer, information technology, medicine and health, telecommunications business, etc. aggregately weight over 50% in the Index. Data as of the end of February 2015 indicate that the total market capitalization of the Index exceeded RMB 3 trillion with average capitalization of the constituents of RMB 6.2 billion. In 2014, its daily average turnover reached RMB 39.6 billion.
More specific material on the Index can be found on the website of Shenzhen Stock Exchange (www.szse.cn) and the website of CNI Index (www.cnindex.com.cn).