BEIJING, March 13, 2006 (PRIMEZONE) -- Dow Jones Indexes today announced changes in the composition of the Dow Jones China Index Series (Dow-China Indexes). The component changes in the Dow Jones China 88 (Dow-China 88), Dow Jones China Offshore 50, Dow Jones China Total Market (Dow-China Total Market), Dow Jones Shanghai (Dow-Shanghai), Dow Jones Shenzhen (Dow-Shenzhen) Index, and Dow Jones CBN China 600 Index will be effective on March 20, 2006.
Following the adjustment, six components will be replaced in the Dow-China 88, which tracks the largest and most liquid 88 stocks in China's Class-A market and reflects roughly 37.60% of the total float market capitalization of both the Shanghai and Shenzhen markets. Companies that will be deleted from the index are: China Greatwall Computer Shenzhen Co., Ltd., Shandong Luneng Taishan Cable Co., Ltd., Sinopec Yangzi Petrochemical Co., Ltd., Sinopec Zhongyuan Petroleum Co., Ltd., Sinopec Qilu Co., Ltd., and SVA Electron Co., Ltd.. These companies will be replaced by Anhui BBCA Biochemical Co., Ltd., Hunan Valin Steel Tube & Wire Co., Ltd., Inner Mongolian Baotou Steel Union Co., Ltd., Beijing Gehua CATV Network Co., Ltd., Beijing Tongrentang Co., Ltd, and Anhui Jianghuai Automobile Co., Ltd. The number of Shanghai-listed stocks in the Dow-China 88 will be increased to 61 components, while the number of Shenzhen-listed stocks will be reduced to 27 components. Shanghai-listed stocks represent 73.07% of the free float market capitalization of the Dow-China 88, compared to 26.93% for Shenzhen-listed components.
Also effective on March 20, three components will be replaced in the Dow Jones China Offshore 50 Index, which has been launched on October 19, 2005 and represents the largest stocks of companies whose primary operations are in mainland China but that trade on the exchanges of Hong Kong and the U.S.. Companies deleted are Silver Grant International Industries Ltd., Huadian Power International Corp. Ltd., and Shanda Interactive Entertainment Ltd. These companies will be replaced by China COSCO Holdings Co. Ltd., Zijin Mining Group Co. Ltd., and Focus Media Holding Ltd.
Changes made to the Dow Jones China 88 and the Dow Jones China Offshore 50 Index are being announced today after the conclusion of a regular semiannually component review.
On March 20, the components of the Dow-China Total Market will decrease to 1141 from 1158, with 1071 A-shares and 70 B-shares. The number of components in the Dow-Shanghai Index will decrease to 700 from 710, with five additions and fifteen deletions, while the number of components in the Dow-Shenzhen index will decrease to 441 from 448,with four additions and eleven deletions. The Dow-Shanghai index represents roughly 95% of the free float market capitalization of Shanghai market, and the Dow-Shenzhen index represents roughly 95% of the free float market capitalization of Shenzhen market. The Dow-China Total Market Index reflects roughly 95% percent of the free float market capitalization for both the Shanghai and Shenzhen markets. Nine components have been replaced in the Dow Jones CBN China 600 Index, which was launched on September 6, 2004 and reflects roughly 80% of China's total free float market capitalization. Changes are being announced today after the conclusion of a regular quarterly component review.
Aimed at providing investors in China and around the world with an accurate tool for tracking equity performance in China's growing stock markets, the Dow-China Indexes are constructed with the same strict standards used to develop the Dow Jones Global Indexes.
Float-adjusted shares, which exclude all state-owned shares and unlisted employee shares, are used for stock selection and index calculation, in order to provide an accurate representation of the shares that are actually available to investors for trading. Dow Jones Indexes excludes block holdings of individuals, other companies or governments that exceed 5% of total market value in calculating free-float for selection of component stocks.
The Dow-China 88, Dow-China Total Market, Dow-Shanghai and Dow-Shenzhen were launched May 27, 1996 to commemorate the 100th anniversary of the world's most widely reported market indicator, the Dow Jones Industrial Average, which was launched in 1896. All four indexes in the Dow-China Index series have a base value of 100 on Dec. 31, 1993.
Note to Editors:
The methodology, as well as a full list of components including weightings and values of the Dow Jones China Indexes, is available at http://chinaindex.dowjones.com.
Company additions to and deletions from the Dow Jones China Indexes do not in any way reflect an opinion on the investment merits of the company.
Journalists may e-mail questions regarding this press release to PR-Indexes@dowjones.com or contact Dow Jones Indexes/STOXX press office:
New York: +1-212-597-5720 Frankfurt: + 49-69-97142815
About Dow Jones Indexes
Dow Jones Indexes is part of Dow Jones & Company, which publishes the world's most vital business and financial news and information. Dow Jones Indexes is a premier global provider of investable indexes, including the Dow Jones Averages and the Dow Jones Global, Regional, Country and Sector Titans Indexes and is co-owner of the Pan-European Dow Jones STOXX Indexes. Together with Wilshire Associates, Dow Jones Indexes markets and licenses the Dow Jones Wilshire index family, which includes the Dow Jones Wilshire 5000 and its size, style, and sector indexes. Dow Jones Indexes also offers a number of specialty indexes including hedge fund, commodity and credit derivative indexes. In addition to Dow Jones Indexes, Dow Jones & Company (NYSE:DJ) (dowjones.com) publishes The Wall Street Journal and its international and online editions, Barron's and the Far Eastern Economic Review, Dow Jones Newswires, MarketWatch and the Ottaway group of community newspapers. Dow Jones is co-owner with Reuters Group of Factiva and with Hearst of SmartMoney. Dow Jones also provides news content to CNBC and radio stations in the U.S.
The Dow Jones Indexes logo is available at: http://www.primezone.com/newsroom/prs/?pkgid=1289