Dow Jones Indexes and China Business Network Co. Ltd. have launched 14 blue-chip sector indexes tracking the largest stocks traded in China.
The Dow Jones CBN China 600 Sector Blue-Chip Indexes are subsets of the Dow Jones CBN China 600 Index, which tracks the largest 600 A-shares traded on the Shanghai and Shenzhen stock exchanges. The 14 sectors are Automobiles & Parts, Basic Resources, Chemicals, Construction & Materials, Financials, Food & Beverages, Health Care, Industrial Goods & Services, Oil & Gas, Personal & Household Goods, Retail, Technology, Travel & Leisure, Utilities.
The Dow Jones CBN China 600 Sector Blue-Chip Indexes were developed to meet increasing demand for transparent and competitive sector indexes for China and are designed to serve as an underlying for investment products such as mutual funds, ETFs and other investable products.
“With the launch of the Dow Jones CBN China 600 Sector Blue-Chip Indexes, Dow Jones Indexes increases significantly our index offerings for China,” said Lars Hamich, managing director of STOXX Ltd., the joint venture responsible for Dow Jones Indexes’ business development in Asia, Europe and the Middle East. “This approach follows the successful European and global development of sector indexes and will offer clients more opportunities to participate in the further development of the Chinese economy.”
“The creation of these new indexes is a reflection of the growing importance of the Chinese economy and the increasingly important role of the Chinese stock exchanges. As the leading professional financial media, CBN hope to be able to bring a higher level of understanding of movements in the Chinese markets”, said GaoYunfei, managing director of China Business Network (CBN). “We believe that this will make the Chinese markets more efficient, giving investors both here in China and investors from abroad greater confidence about investing in Chinese companies. We firmly believe that more transparency and more information help markets become more prosperous, more fair and more attractive to investors.”
The Dow Jones CBN China 600 Sector Blue-Chip Indexes are defined by the Industry Classification Benchmark (ICB). Each sector index contains at least 10 but not more than 15 securities. Stocks are selected within each sector based on rankings by free-float market capitalization, sales/revenue and net profit, with weights of individual securities restricted to 20%.
The index composition is reviewed semiannually. Historical index values are available on a daily basis back to December 31, 2000. The index is calculated in Renminbi.