Dow Jones adjusts component stocks of China indices

The component stocks of Dow Jones China indices will be adjusted on July 1, Dow Jones said Wednesday in Beijing.

The changed indices include Dow Jones China 88, Dow Jones China Total Market, Dow Jones Shanghai and Dow Jones Shenzhen Index.

The adjustment leads to deletion of 14 components from Dow Jones China 88, which tracks the largest and most liquid 88 stocks in China's Class-A market. Fourteen new components were added. The post-change index reflects roughly 30.77 percent of the total market value of Shanghai and Shenzhen markets.

Among all component stocks of Dow Jones China 88, 57 are Shanghai-listed and 31 from Shenzhen Stock Exchange.

Following the adjustment, the number of components of Dow Jones China Total Market will increase from 1,033 to 1,082, with 1,016 A-shares and 66 B-shares.

The number of components in Dow Jones Shanghai Index will increase from 626 to 664, with 42 additions and four deletions. Meanwhile, the number of components in Dow Jones Shenzhen Index will increase from 407 to 418, with 13 additions and two deletions.

According to Dow Jones sources, Dow Jones Shanghai and Shenzhen Index each represents roughly 95 percent of the market value of their given markets. The Dow Jones China Total Market Index reflects roughly 95 percent of the market values of both Shanghai and Shenzhen stock markets.

Dow Jones excludes all state-owned shares and unlisted employee shares in stock selection and index calculation. Dow Jones indices also exclude block holdings of individuals, companies and governments whose stock value exceeding 5 percent of the market total.

Dow Jones China indices were launched on May 27, 1996.