In the May 27, 1996 commemoration of the Dow Jones Industrial Average index the occasion of the centenary of the birth, the Dow Jones introduced the Dow Jones China Index Series. As the first global index compiled by the agency prepared for the Chinese mainland stock market index series provides investors with the Dow Jones China Index, a measure of the performance of China's domestic capital market authority of tools.
Dow Jones China Index series include: Dow Jones China 88 Index, Dow Jones China Index, Dow Jones Shanghai and Dow Jones Shenzhen Index.
To accurately the actual transaction on behalf of investors the number of shares available, the Dow Jones China Index in the stock _select_ion and index calculation using shares outstanding, which excludes state-owned shares, institutional ownership and non-tradable shares of workers. _Select_ion of constituent stocks in the calculation for the free flow of capital, the Road Index Series ruled out holding more than 5% of the market value of the individual, other companies and government-held shares.
Road, Shanghai Index and the dark-index constituent stocks are _select_ed from the Shanghai Stock Exchange and Shenzhen Stock Exchange trading of all listed stocks, which covers the local market were 95% of the total market capitalization. The _select_ion of constituent stocks in the adjusted market capitalization and stock liquidity as the basis. In order to reflect the diversity of all industries and sectors, in the process of _select_ing constituent stocks also considered the distribution between different industrial sectors.
Dow Jones China Index and the Road by the Road Shanghai and Shenzhen indices merger, representing the Shanghai Stock Exchange and Shenzhen Stock Exchange traded stocks in 95%. These three indices are designed for the stock market benchmark index to track China's growing general trend of the stock market. They run for the Chinese investors to provide an accurate measure of the market and authoritative tool. Road by the Dow Jones China 88 Index Index 88 largest and most liquid market value of the stock composition. In the _select_ion process of the constituent stocks of the two main criteria used is based on calculation of average daily trading volume and trading liquidity of the market value. Meanwhile, the establishment of buffer zone would be an appropriate index to ensure that Road 88 has a lower conversion rate of the index.
Dow Jones China Index series in accordance with all the constituent stocks of the Standard Industrial Classification (icb) division. There are four levels of the standard, including 10 industry super sectors ﹑ 18 ﹑ 39 industries and 104 slave industry. With the highest level of 10 industries, including oil and gas industry ﹑ ﹑ ﹑ basic materials of health care consumer goods ﹑ ﹑ ﹑ consumer services, telecommunications services ﹑ utilities, finance and technology.
Dow Jones China Index Series in four indices are denominated in Renminbi yuan, the base period are 31 December 1993, the base as 100. Although the Shanghai Stock Exchange and Shenzhen Stock Exchange in December 1990 running, but we decided to grandfather in the preparation of indices of historical data before 1993. This is because, before 1993, for various reasons, the two markets do not form a regular transaction. These reasons include insufficient number of listed stocks, speculative trading and the lack of standardization of strong market discipline.
Among the world's leading Dow Jones index of the preparation of sector development organization and maintenance of 3,000 kinds of global indices used as benchmarks, and the basis of investment products. Dow Jones Index has become the basis of various financial products markets, including futures and options, mutual funds, exchange-traded funds, equity indexed annuities and structured products, such as OTC options, swaps, warrants and equity related bills and so on. |