SBL (CN) P-share Index Explanation of Compilation
1. In China,the private enterprise has become an important component of the national economy. Many excellent private enterprisers have obtained the absolute or relative control powers in some listed companies through public offering or buying shell (买壳) listing,which have been the important members of Shanghai Stock Exchange and Shenzhen Stock Exchange. As Chinaentering WTO,capital globalization,and Chinaprivate firms becoming more and more influential,there is urgent need to indicate the performance of the private listed companies objectively in order to meet the diversifyiag investment demands of the numerous investors all over the world to the best of our abilities. Therefore,the investment service department of Chinaprivate firms of the Shuang Bao Liang Investment Corporation of Shengzhen compiled the SBL(CN) P-share Composite Index and SBL (CN) P-share Component Index...
2. Riyin Huabao(瑞银华宝) company compiled and publicized the Chinap-share component index (including Hong Kong,Singapore and U.S.) which is very welcomed by the foreign fund managers,specially institutional investors (see ,June 2002 ). At the same time,we should note that the Chinap-share component index does not include the private listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange,so it is not proper for the investors who want to invest in Chinasecurities market. The SBL(CN) P-share Composite Index and SBL (CN) P-share Component Index reflect the development of the Chinaprivate listed companies comprehensively. So for the investors both here and abroad,specially the foreign institutional investors,these both indexes are agreat help in understanding the development of Chinaprivate enterprises and making rational investment decisions in Chinaprivate firms.
3. Because of the historical reasons,the stock rights of the companies listed in the Shanghai Stock Exchange and Shenzhen Stock Exchange are artificially divided into circulating shares and non-circulating shares. And The SBL (CN) P-share Composite Index and SBL (CN) P-share Component Index are both value-weighted indexes. So we use the total equity capitalization(including circulating shares and non-circulating shares) as the weights to calculate the SBL (CN) P-share Composite Index. Correspondingly,we use the circulating stocks capitalization as the weights to calculate the SBL(CN) P-share Component Index. We think that this handling can truly indicate the full views and the performances of the private listed companies in Chinasecurities market,and it also is favorable to maintain the continuance and stability of these indexes when the non-circulating stocks become circulating in the future.
4.We believe that the SBL (CN) P-share Composite Index and SBL (CN) P-share Component Index must be able to more and more scientific,representative and authoritative by our persisting efforts and general public's supports and encouragements;we also believe that the investment instruments that base on these indexes must be developed in the near future and become an important reference for numerous investors at home and abroad as they making investment decisions. Let us make great efforts all together to accelerate the development of the capital markets in big Chinacircle(大中华圈).