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Last updated at: (Beijing Time) Thursday, June 20, 2002

Shanghai Stock Exchange to Issue New Component Index

The Shanghai Stock Exchange will replace its six-year-old SSE-30 index with the new SSE-180 index based on 180 blue chip stocks, instead of 30, to reflect expanded market, starting from July 1.


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The Shanghai Stock Exchange will replace its six-year-old SSE-30 index with the new SSE-180 index based on 180 blue chip stocks, instead of 30, to reflect expanded market, starting from July 1.

The decision to issue the new index was made after wide consultation, said sources with the stock exchange, adding that the new SSE-180 index was jointly developed by experts from home and abroad.

The SSE-30 index, which started on July 1, 1996, was selected from the then over 400 A share stocks on the Shanghai Stock Exchange.

But as the number of stocks on the bourse has increased to nearly 700, the old index is becoming more and more irrelevant.

According to SSE figures, the capitalization of tradable shares -- state-owned shares in listed companies are not tradable in China -- against SSE component stocks accounted for 33.26 percent of the bourse's total capitalization at the end of July 1996.

By April 2002, the figure had dropped to 10.05 percent.

The capitalization of the SSE-180 tradable shares accounts for 50 percent of that for the bourse, and 47 percent of the trading values.

The new SSE-180 index will have the closing points of the SSE- 30 on June 28 as its benchmark.

SSE-180 component stocks will have an average price-earning ratio of 28, compared to 38 for SSE-30 component stocks, the sources said.


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