The first two articles introduce Shanghai Composite Index :
. Among them, the number of equity in the sample refers to the free circulation of stocks.
3. New stocks are selected: New stocks with the average daily total market value in the 5 trading days after are listed, and the sample stocks will be included in the sample stocks after 15 trading days. Otherwise, the rules will be determined in the next adjustment cycle.
4. Sample adjustment cycle: adjusts samples in June and December each year, and each sample adjustment does not exceed 10% of the total number of samples. At the same time, buffer rules are set to control the adjustment range, and alternative stock rules are set to temporarily replace the original sample stocks by ST/*ST/delisting, etc.
shows that compared with the Shanghai Composite Index, the compilation rules of the Shenzhen Component Index will be relatively "advanced". For example, in terms of the time of inclusion of new stocks and the removal of ST stocks , the Shanghai Composite Index did not adjust accordingly until the new regulations of 2020.07.22. In addition, in terms of weight calculation method, the Shanghai Composite Index is still weighted by the total market value, while the Shenzhen Component Index is weighted by the free circulating market value , which can better reflect the actual market operation than the Shanghai Composite Index.
3. Sample weight analysis
The sample stocks of the Shenzhen Stock Exchange Index include the Shenzhen Stock Exchange main board listed companies and GEM listed companies. Specifically, as of 2021.10.29, there were 367 main board listed companies, accounting for about 70%, and 133 GEM listed companies, accounting for about 30%.
compared with the current 1,484 main board companies in Shenzhen (58%) and GEM companies 1,046 GEM companies (42%). It can be seen that the probability of main board companies being selected as Shenzhen Component Index sample stocks is higher, which is also in line with the traditional impression that the average market value of main board companies is larger than that of GEM.
In the previous article, I said that the Shanghai Composite Index samples are mostly mature and traditional industries. Compared with this, there are more growth industries among the sample stocks of the Shenzhen Component Index, which is just complementary to the Shanghai Composite Index. For the convenience of comparison, I made a table to list the industry distribution of the two indexes as of 2021.10.29, as follows:
The winning bid for red is the industries with significantly greater weight than the Shanghai Composite Index in the Shenzhen Composite Index, namely information technology, medical and health ; the highlighted green is the industries with significantly less weight than the Shanghai Composite Index in the Shenzhen Composite Index, namely finance, real estate, energy, and utility . It can be said that the differences in the industry attributes of the two indexes are already very obvious, and you can experience it yourself.
Look at the top 50 heavyweight stocks in the Shenzhen Component Index. The above table also lists the industries of each stock. Obviously, it is a different scene from the Shanghai Component Index, which is the "Chinese-header" dominant list.
I also listed the 20 most important stocks in the Shenzhen Component Index in the past 10 years. As shown in the table above, there are "evergreen trees" that have been on the list for 10 consecutive years, such as Vanke , Wuliangye , Gree , Midea, Ping An Bank , as well as new kings such as CATL , Mindray Medical , and even sunsets such as LeTV , Huayi Brothers, Suning . It can only be said that the world changes and times change.
In addition, careful friends may notice a phenomenon when looking at the picture above - the weight share of the 20 major weight stocks has dropped significantly since 2015, which corresponds to the significant expansion of the Shenzhen Component Index sample stocks in 2015. In the next article, we will talk about the impact of this expansion and the historical manifestation of the Shenzhen Component Index.
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