China's major stock indices adjusted to include more tech firms

China's major stock indices have adjusted their constituents beginning from Monday to incorporate more tech firms, reflecting the Chinese economy's structural transformation from focusing on quantity to emphasizing quality.

The adjustments involve several major indices from the Shanghai and Shenzhen Stock Exchanges, including the SSE 50, SSE 180, SSE STAR 50, and SSE Science and Technology Innovation Board 100 Index. Most of the constituents included this time are from industries such as information technology, high-end equipment manufacturing, biomedicine, and new energy. According to economists, this large-scale adjustment of constituents represents the structural transformation in China's economy.

Zhejiang Chint Electrics Co., Ltd. was included in the SSE 180 this time. At its intelligent manufacturing demonstration factory, the production line produces the latest intelligent circuit breakers, 60 percent of which will be exported to overseas markets.

Chen Guoliang, president of the company, said that the biggest change after being included in the SSE 180 is gaining more market attention and development opportunities, making it easier to expand market share and distribute products overseas.

"[Being included in the SSE 180 could] continuously expand and enhance our influence and reputation among customers, enhance our voice in the industry, and continue to promote the growth of our entire business share. It will narrow our stock's bid-ask spread, improve the liquidity and activity of the stock, and reduce financing costs," said Chen.

Another intelligent product platform-based enterprise executive acknowledged that accelerating innovation and transformation has become a crucial factor for the company's inclusion in major stock indices.

"Our research and development investment for 2024 reached 5.16 billion yuan (about 718.5 million U.S. dollars), bringing our total investment over the past three years to more than 14.7 billion yuan (about 2.05 billion U.S. dollars). We have over 16,000 research and development personnel across our five research and development centers," said Li Yutao, Board Secretary of Huaqin Technology Co., Ltd.

According to statistics, using the SSE STAR 50 as an example, the research and development expenses of constituent companies in 2024 totaled 63 billion yuan (about 8.77 billion U.S. dollars), marking a 6.4 percent increase year on year.

More than 60 percent of these companies had research and development intensity exceeding 10 percent, and 20 constituent companies invested over one billion yuan in research and development, primarily focusing on industries such as new-generation information technology, biomedicine, and high-end equipment.

China's major stock indices adjusted to include more tech firms

⁠⁠⁠⁠⁠⁠⁠China's natural gas production is projected to reach 300 billion cubic meters by 2030, according to a development report released in Beijing.

The report, covering the development of China's oil and gas industry during the country's 14th Five-Year Plan period (2021–2025), said proven geological reserves rose by 7 billion tons of oil and 7 trillion cubic meters of gas, up 43 percent and 40 percent respectively from the previous five-year period. Oil and gas production hit record highs.

"The oil output is likely to reach between 215 and 216 million tons this year. Natural gas has seen major growth during the 14th Five-Year Plan period (2021–2025), with annual domestic output rising by nearly 13 billion cubic meters. In the 15th Five-Year Plan period (2026-2030), we expect annual increases of more than 10 billion cubic meters, reaching 300 billion cubic meters around 2030," said Wu Mouyuan, deputy director of the Economics and Technology Research Institute of China National Petroleum Corporation (CNPC).

The report forecast that China's energy structure will feature less coal, stable oil and gas, and rising non-fossil fuels over the next decade.

By 2060, fossil fuels are expected to account for 23 percent of the energy mix, hydropower and nuclear 19 percent, wind 25 percent, and solar 30 percent, the report said.

"In the next five years, through the integrated development of fossil energy and renewables, we will achieve a heathy, stable, and resilient energy system. Clean energy will continue to grow rapidly. More than 90 percent of renewable energy will be consumed via electricity, so the electrification at end-use sectors is a key direction of transformation in the future," said Wu.

With the rapid growth of artificial intelligence and new high-energy industries, China's power demand will exceed 20 trillion kilowatt hours by 2060, double the 2025 level. Electrification at end-use sectors is expected to reach 62 percent, rising by nearly one percentage point annually, the report projected.

China to see gas output hitting 300 bcm by 2030: report