The compilation methodology of the ChiNext Index incorporates the successful experience of the Shenzhen Index Series while introducing innovations tailored to the characteristics of the ChiNext market.
First, the index selection is primarily based on two key indicators of the sample stocks: "proportion of market float-adjusted market capitalization" and "proportion of market trading value," reflecting the high liquidity and active trading of the Shenzhen market.
Second, the index calculation uses the "precise value" of the "free-float shares" of the sample stocks as the weighting factor, eliminating the leverage effect caused by share structure, thereby making the index performance more sensitive, accurate, and realistic.
Third, the index sample stocks are adjusted quarterly to reflect the rapid growth of the ChiNext market. The ChiNext Index comprehensively and objectively reflects the overall price trends of ChiNext stocks, highlighting the operational characteristics of the ChiNext as an independent market tier. It provides investors with an authoritative benchmark and offers new targets for the development of index products, facilitating the further advancement of multi-tiered market construction and the sustainable, healthy development of the ChiNext market.
The selection criteria for the ChiNext Index are based on the average proportion of float-adjusted market capitalization and the average proportion of trading value over a certain period (generally six months), weighted at a 2:1 ratio. The results are ranked from high to low, and after considering factors such as corporate governance and operational conditions, the constituent stocks of the ChiNext Index are selected.
Once the number of samples reaches 100, the ChiNext Index will implement quarterly adjustments, each time using buffer zone technology. The adjustments are implemented on the first trading day of January, April, July, and October each year, with the adjustment plan typically announced on the first trading day of the second full trading week of the month preceding the implementation date.
The ChiNext Index is authorized by the Shenzhen Stock Exchange and compiled, maintained, and published by Shenzhen Securities Information Co., Ltd. Real-time index data is disseminated via the Shenzhen Stock Exchange's real-time satellite broadcasting system alongside real-time securities data. Information on index constituents and related details is published on the Shenzhen Stock Exchange website and the CNIndex website.