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CSI 300 Sector indices début today

(chinadaily.com.cn)
Updated: 2007-07-02 14:33

The China Securities Index Co Ltd (CSI Ltd) officially unveiled its CSI 300 Sector indices today. The indices are compiled according to international investment criteria and will further improve the CSI 300 Index system, says the China Securities Journal.

The sector indices cover 10 industries. They are CSI 300 Energy index, CSI 300 Materials index, CSI 300 Industrials index, CSI 300 Consumer Discretionary index, CSI 300 Consumer Staples, CSI 300 Health Care index, CSI 300 Financials index, CSI 300 Information Technology index, CSI 300 Telecommunication Services index and CSI 300 Utilities index.

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The sector indices will follow the same standard as the CSI 300 Index in terms of calculation and maintenance. Constituents of the sector indices are also adjusted every six months to keep up with the pace of the CSI 300 index adjustment, according to an official with CSI Ltd.

The official said that the sector indices could provide investors with better analyzing tools to measure the performance of different sectors within the CSI 300 Index. The norm of its classification and calculation is widely accepted in the international market, and will meet the needs of both domestic and foreign investors. In addition, financial derivatives like ETF funds and index futures could also be developed based on indices in the future.

Launched in 2005, the CSI 300 Index has become one of the most influential indices covering both Shanghai and Shenzhen markets. By the end of June, there was 300 billion yuan worth of mutual funds with their performances evaluated based on the CSI 300 Index. Fund management companies like Dacheng and Penghua also developed investment products worth billions of yuan, tracking the Index as their investment objective.

In addition, the CSI 300 Index also becomes noted in overseas capital markets. CSI Ltd has authorized several foreign institutions to design and sell products developed based on the index. Meanwhile, the first overseas ETF fund tracking the CSI 300 Index will be listed on the Hong Kong Securities Exchange in mid July.