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NEW YORK (Sept. 15, 2008) ― Dow Jones Indexes, a leading global index provider, today announced changes in the composition of the Dow Jones China Index Series. Component changes in the Dow Jones China 88, Dow Jones China Offshore 50, Dow Jones China Broad Market, Dow Jones Shanghai, Dow Jones Shenzhen and Dow Jones CBN China 600 indexes will be effective on September 22, 2008.
The following 10 companies will be deleted from the Dow Jones China 88 Index, which tracks the largest and most liquid 88 stocks in China's Class-A market and reflects roughly 53.14% of the float-adjusted market capitalization of both the Shanghai and Shenzhen Class-A markets: Beijing Capital Co., Ltd. (Utilities, 600008.SH); Faw Car Co., Ltd. (Automobiles & Parts, 000800.SZ); Founder Technology Group Corp. (Technology, 600601.SH); Jiangxi Copper Co., Ltd. (Basic Resources, 600362.SH; 0358.HK); Orient Group Incorporation (Retails, 600811.SH); Qingdao Haier Co., Ltd. (Personal & Household Goods, 600690.SH); Sichuan Hongda Co., Ltd. (Basic Resources, 600331.SH); Tongling Nonferrous Metals Group Co., Ltd. (Basic Resources, 000630.SZ); Xi'an Aircraft International Corporation (Industrial Goods & Services, 000768.SZ) and Yunnan Chihong Zinc & Germanium Co., Ltd. (Basic Resources, 600497.SH).
The companies entering the index are: Anhui Conch Cement Co., Ltd. (Construction & Materials, 600585.SH; 0914.HK); Baoding Tianwei Baobian Electric Co., Ltd. (Industrial Goods & Services, 600550.SH); China CSSC Holdings Co., Ltd. (Industrial Goods & Services, 600150.SH); China Railway Construction Corporation Limited (Construction & Materials, 601186.SH; 1186.HK); China South Locomotive & Rolling Stock Corporation Limited (Industrial Goods & Services, 601766.SH; 1766.HK); Jinduicheng Molybdenum Co., Ltd. (Basic Resources, 601958.SH); Pingdingshan Tianan Coal Mining Co., Ltd. (Basic Resources, 601666.SH); Sinochem International Corporation (Chemicals, 600500.SH); TBEA Co., Ltd. (Industrial Goods & Services, 600089.SH) and Zijin Mining Group Co., Ltd. (Basic Resources, 601899.SH; 2899.HK).
The number of Shanghai-listed stocks in the Dow Jones China 88 Index will be increased to 70 from 67 components, while the number of Shenzhen-listed stocks will be decreased to 18 from 21 components. Shanghai-listed stocks represent 86.03% of the free-float market capitalization of the Dow Jones China 88 Index, compared to 13.97% for Shenzhen-listed companies.
Three components will be replaced in the Dow Jones China Offshore 50 Index, which 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 companies that will be deleted from the index are: Air China Ltd. (Travel & Leisure, 0753.HK; 601111.SH; AIRYY), Beijing Capital International Airport Company Limited (Industrial Goods & Services, 0694.HK) and Zhejiang Expressway Co. Ltd. (Industrial Goods & Services, 0576.HK).
The companies entering the index are: China Railway Construction Corporation Ltd. (Construction & Materials, 1186.HK; 601186.SH), China Railway Group Ltd. (Construction & Materials, 0390.HK; 601390.SH) and JA Solar Holdings Co. Ltd. ADS (Oil & Gas, JASO).
With 18 additions and 11 deletions, the number of components in the Dow Jones China Broad Market Index will increase to 1167 from 1160 with 1122 A-shares and 45 B-shares. The Dow Jones China Broad 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 Jones Shanghai Index will increase to 715 from 713, with 9 additions and 7 deletions, while the number of components in the Dow Jones Shenzhen Index will increase to 452 from 447 components, with 9 additions and 4 deletions. The Dow Jones Shanghai and Dow Jones Shenzhen indexes represent approximately 95% of the free-float market capitalization of their respective markets.
There will be 22 components replaced in the Dow Jones CBN China 600 Index. The Index reflects roughly 86% of the free-float market capitalization of China's Class-A market.
All changes above are being announced today after the conclusion of a regular periodical review.
While the Dow Jones CBN China 600 Sector Blue-Chip indexes are typically reviewed semiannually in June and December, four changes are being announced this quarter.
In the Dow Jones CBN China 600 Construction & Materials Blue-Chip Index, Shenzhen Tonge (Group) Co., Ltd. (Construction & Materials, 000090.SZ) will be removed as it is being deleted from the Dow Jones CBN China 600 Index, of which the Dow Jones CBN China Construction & Materials index is a subset. China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. (Construction & Materials, 000758.SZ) will be deleted due to the change of its sector classification to Basic Resources. The companies will be replaced by Shanghai Pudong Road & Bridge Construction Co., Ltd. (Construction & Materials, 600284.SH) and Xishui Strong Year Co., Ltd. Inner Mongolia (Construction & Materials, 600291.SH).
In the Dow Jones CBN China 600 Retail Blue-Chip Index, Shenzhen Agricultural Products Co., Ltd. (Retail, 000061. SZ) will be deleted due to the change of its sector classification to Food & Beverage. It will be replaced by Yinzuo Group Co., Ltd. (Retail, 600858.SH).
In the Dow Jones CBN China 600 Technology Blue-Chip Index, Yantai Dongfang Electronics Information Industry Co., Ltd. (Technology, 000682.SZ) will be deleted due to the change of its sector classification to Industrial Goods & Services. It will be replaced by Searainbow Holding Corp. (Retail, 000503.SZ). Effective on September 22, 2008, the sector classification of Searainbow Holding Corp. will change from Retail to Technology.
The Dow Jones CBN China 600 Sector Blue-Chip Indexes were launched on September 8, 2005 as subset of the Dow Jones CBN China 600 Index.
The methodology, as well as a full list of components, weightings and values, of the Dow Jones China Indexes are available at http://www.djindexes.com.
The Dow Jones 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 Jones China 88, Dow Jones Shanghai and Dow Jones 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.
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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.
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About Dow Jones Indexes
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