Multiple core indices of Shenzhen Stock Exchange (SZSE) officially underwent a round of sample adjustment on Monday, underscoring the growing prominence of high-tech companies in the new indexes, as announced by the SZSE and Shenzhen Securities Information Co. Ltd.
The recent adjustment affected nearly all core broad-based indexes of A-shares, further emphasizing the technology focus in the index system.
"We can see that the quality of emerging industries whose indexes were adjusted has significantly improved. For example, the weight of strategic emerging industries in the ChiNext Index has reached 93 percent, and this proportion is even higher in the ChiNext 50 Index -- reaching 98 percent, with nearly half of them belonging to the new-generation information technology industries such as artificial intelligence and chips," said Tian Lihui, a finance professor at the Nankai University.
The adjustment is of great significance to ordinary investors, capital markets, listed companies, as well as the overall Chinese economy, according to Tian.
"For ordinary investors, the adjustment of indexes effectively has the stocks in their hands 'filtered' once. Over time, the optimized index structure indicates that the 'new drivers' of the Chinese economy reflected in the indexes are becoming more robust, enhancing their value as a long-term investment tool," Tian said.
For the companies newly added to the core indexes, the inclusion signifies not only market recognition but also offers tangible benefits.
"The inclusion will be conducive to the efforts of those enterprises to attract more medium- and long-term investment. It's a market-based incentive mechanism that encourages listed companies to prioritize core businesses, strengthen innovation, and improve both quality and returns," said the professor.
Core SZSE indices adjusted to highlight technological innovation
