BEIJING, March 12, 2007 (PRIME NEWSWIRE) -- Dow Jones Indexes, a leading global index provider, today announced changes in the composition of the Dow Jones China Index Series (Dow-China Indexes). Component changes in the Dow Jones China 88 (Dow-China 88), Dow Jones China Total Market (Dow-China Total Market), Dow Jones Shanghai (Dow-Shanghai), Dow Jones Shenzhen (Dow-Shenzhen), Dow Jones China Offshore 50 Index and Dow Jones CBN China 600 indexes will be effective on March 19, 2007.
One component will be replaced in the Dow Jones China Offshore 50 Index. Launched in October 2005, the Dow Jones China Offshore 50 represents the largest stocks of companies whose primary operations are in mainland China but that trade on exchanges in Hong Kong and the U.S.
The following seven companies will be added to the Dow-China 88 which tracks the largest and most liquid 88 stocks in China's Class-A market and reflects roughly 39.61% of the float adjusted market capitalization of both the Shanghai and Shenzhen markets: Shanghai International Port (Group) Co., Ltd. (Industrial Goods & Services, SHSE: 600018), Industrial Bank Co., Ltd. (Banks, SHSE: 601166), Ping An Insurance (Group) Company of China, Ltd. (Insurance, SHSE: 601318), Guangshen Railway Company Limited (Travel & Leisure, SHSE: 601333), Industrial and Commercial Bank Of China Limited (Banks, SHSE: 601398), Beijing North Star Company Limited (Financial Services, SHSE: 601588) and China Life Insurance Company Limited (Insurance, SHSE: 601628).
The companies exiting the index are: Shan Dong Dong-e E-jiao Co., Ltd. (Health Care, SSE: 000423), Henan Shuanghui Investment & Development Co., Ltd. (Food & Beverage, SSE: 000895), Hunan Valin Steel Tube & Wire Co., Ltd. (Basic Resources, SSE: 000932), Beijing Tongrentang Co., Ltd. (Health Care, SHSE: 600085), Shanghai Aerospace Automobile Electromechanical Co., Ltd. (Automobiles & Parts, SHSE: 600151), Shanghai Municipal Raw Water Co., Ltd. (Utilities, SHSE: 600649) and Feilo Acoustics Co., Ltd. Shanghai (Industrial Goods & Services, SHSE: 600651).
The number of Shanghai-listed stocks in the Dow-China 88 will be increased to 62 from 59 components, while the number of Shenzhen-listed stocks will be decreased to 26 from 29 components. Shanghai-listed stocks represent 77.17% of the free-float market capitalization of the Dow-China 88, compared to 22.83% for Shenzhen-listed companies.
With 29 additions and 16 deletions, the number of components in the Dow-China Total Market Index will increase to 1148 from 1135 with 1082 A-shares and 66 B-shares. The Dow-China Total Market Index reflects approximately 95% percent of the free-float market capitalization for both the Shanghai and Shenzhen markets.
The number of components in the Dow-Shanghai Index will increase to 709 from 705, with 14 additions and 10 deletions, while the number of components in the Dow-Shenzhen Index will increase to 439 from 430 components (15 additions and 6 deletions). The Dow-Shanghai and Dow-Shenzhen indexes represent approximately 95% of the free-float market capitalization of their respective markets.
Thirty components will be replaced in the Dow Jones CBN China 600 Index, which reflects roughly 80% of China's free-float market capitalization. Changes are being announced today after the conclusion of a regular quarterly review.
No review took place for the Dow Jones CBN China 600 Sector Blue-Chip Indexes which are reviewed semiannually in June and December. The indexes were launched on September 8, 2005 as subsets of the Dow Jones CBN China 600 Index.
All changes are being announced today after the conclusion of a regular quarterly review. The methodology, as well as a full list of components, weightings and values of the Dow Jones China Indexes is available at http://chinaindex.dowjones.com.
The Dow-China Indexes are designed to provide investors globally with accurate tools for measuring equity performance in China. Float-adjusted shares, which exclude all state-owned and unlisted employee shares, are used for stock selection and index calculation, in order to accurately reflect shares available to the public. Block holdings of individuals, other companies or governments that exceed 5% of total market value are also excluded.
The Dow-China Total Market, Dow-Shanghai and Dow-Shenzhen indexes were launched on May 27, 1996 to commemorate the 100th anniversary of the Dow Jones Industrial Average, the world's most widely quoted stock market indicator.
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:
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About Dow Jones Indexes
A full-service index provider, Dow Jones Indexes develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products. Best known for the Dow Jones Industrial Average, Dow Jones Indexes also is co-owner of the Dow Jones STOXX indexes, the world's leading pan-European indexes, and together with Wilshire Associates, provides the Dow Jones Wilshire Global Index family, which is anchored by the Dow Jones Wilshire 5000 and covers more than 12,000 securities in 59 markets. Beyond equity indexes, Dow Jones Indexes maintains a number of alternative indexes, including measures of the hedge fund and commodity markets. Dow Jones indexes are maintained according to clear, unbiased and systematic methodologies that are fully integrated within index families. www.djindexes.com
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