A number of important A-share indices will usher in adjustments. On December 2, the Shenzhen Stock Exchange announced that according to the index compilation rules, the Shenzhen Stock Exchange decided to implement regular adjustments to sample stocks on the Shenzhen Stock Exchange Component Index, ChiNext Index, Shenzhen Stock Exchange 100 and other indices on December 16.

On November 29, the Shanghai Stock Exchange and China Securities Index Co., Ltd. decided to adjust the samples of the SSE 50, SSE 180, SSE 380, and STAR 50 indexes, which will take effect after the market closes on December 13, 2024. Among them, 5 samples of the SSE 50 Index were replaced, 18 samples of the SSE 180 Index were replaced, 38 samples of the SSE 380 Index were replaced, and the samples of the STAR 50 Index remained unchanged.

Specifically, a number of listed companies in the southwest region are involved in the transfer in or out. From the perspective of the listed companies transferred, high-tech development (000628. SZ), Zongshen Power (001696. SZ) was transferred to the SZSE Component Index sample, and Kelun Pharmaceutical (002422. SZ), Xinyisheng (300502. SZ) was transferred to the SZSE 100 Index.

comes from the official website of the Shenzhen Stock Exchange.

There are transfers in and transfers out. According to the announcement of the Shenzhen Stock Exchange, among the listed companies in the southwest region, Proton shares (300363. SZ) called up the SZSE Component Index sample, and the company (002812. SZ) called up a sample of the SZSE 100 Index.

In terms of the Shanghai Stock Exchange, Cialis (601127. SH) was transferred to the SSE 50 Index sample, and Sichuan Luqiao (600039. SH), Sichuan Investment Energy (600674. SH), Baili Tianheng (688506. SH) and other listed companies in southwest China were transferred to the SSE 180 Index sample, and Taiji Group (600129. SH) was transferred to the SSE 380 Index sample.

At the same time, Taiji Group, Shuijingfang (600779. SH), Sichuan Changhong (600839. SH) transferred out the sample of the SSE 180 Index, and Sichuan Road and Bridge and Sichuan Investment Energy transferred out the sample of the SSE 380 Index.

Why is it being adjusted?

According to the announcement of China Securities Index Co., Ltd., the sample of the SSE 180 Index is taken as an example, and the sample stocks of the index are determined according to the growth score and value score of individual stocks, and the 60 stocks with the highest growth score and value score are selected as the sample stocks of the SSE 180 Index.

Among them, the growth score and value score depend on the company's main business income growth rate, net profit growth rate, internal growth rate, dividend yield, net assets per share to price ratio, net cash flow per share to price ratio, earnings per share to price ratio and other important factors.

According to the announcement of the CNI Index, the sampling conditions of the SZSE 100 Index are different, including "the company has no major violations in the past year, no major problems in the financial report", "the company has no abnormal operation in the past year, no major losses" and other conditions, and the total market value of individual stocks will also be taken as one of the evaluation factors.

Among the listed companies that were unilaterally transferred out, the company faced problems such as "illegal reduction of holdings by the actual controller". Proton shares are facing continuous performance losses, financial data show that in the first three quarters of this year, Proton shares achieved revenue of 2.125 billion yuan, down 30.02% year-on-year, and net profit in the same period was -206 million yuan, down 145.68% year-on-year.

Among the listed companies transferred, Cialis and others have recently performed well in the secondary market. According to the reporter of Nandu Bay Finance Society, the Shanghai Stock Exchange 50 equal-weight index selects the most representative 50 listed company securities with large scale and good liquidity in the Shanghai securities market as index samples to reflect the overall performance of the securities of a group of leading enterprises with the most market influence in the Shanghai securities market. The index sample is adjusted every six months, and the proportion of the sample for each adjustment is generally not more than 10%; The buffer zone is set for sample adjustment, and the new samples ranked before the top 40 are given priority, and the old samples ranked before the top 60 are retained first.

comes from the official website of the Shanghai Stock Exchange

It is worth mentioning that the A-share index scheme is still being optimized, and in this process, ESG and other factors are taken into account. In November this year, the Shanghai Stock Exchange announced that it would optimize the SSE 180 Index scheme to better reflect the overall performance of core listed companies in Shanghai, including the addition of industry equilibrium rules, the introduction of ESG sustainable investment concepts, the exclusion of listed companies with CSI ESG evaluation results below C, and the reduction of the probability of major negative risk events in the sample.