Walter Hutchens’ Blog

Paying close attention to stock markets in China used to be the pursuit of only a few foreigners. But international media have been paying more attention since the introduction of the QFII scheme, joint venture investment banks and fund management companies and other means for foreigners to participate in the China’s securities markets.

Dow Jones has for a while had a daily report on the RPC markets, and now they’ve launched a joint-venture index project. The China Economic Review reports:

Dow Jones launches Shanghai-Shenzhen index

In a challenge to the mainland’s incumbent Xinhua-FTSE index, Dow Jones yesterday launched a new A-share market index in a joint venture with Shanghai Media Group’s CBN unit. The Dow Jones CBN 600 Index tracks an estimated 70% of the 600 largest A-share companies on the Shanghai and Shenzhen exchanges. Dow Jones’ other index products are the China Blue-Chip 88 and an all-share index, both of which lacked the clout of a strong media group on the mainland. Its association with China Business Network is expected to give its latest index launch needed lift.

Dow Jones reports on itself here:

Dow Jones Indexes, CBN Launch Broad China Index

DOW JONES NEWSWIRES
September 6, 2004 4:45 a.m.

Edited Press Release

LONDON — Dow Jones Indexes, a global index provider, and China Business Network Co Ltd (CBN), a professional financial-media company, Monday launched the Dow Jones CBN China 600 Index, a broad Chinese benchmark index.

The Dow Jones CBN China 600 Index is an authoritative index covering both Shanghai and Shenzhen security markets.

The Dow Jones CBN China 600 Index, which is calculated in the local currency, Chinese Renminbi, provides a rules-based index methodology consistent with the Dow Jones Global Index family, which has proven popular with market participants using the Dow Jones STOXX 600 Index.

The 600 A-share stocks included in the Dow Jones CBN China 600 Index are the largest companies listed at the Shanghai Stock Exchange and Shenzhen Stock Exchange.

Companies included in the Dow Jones CBN China 600 are selected according to float-adjusted market capitalization. The indexes’ free-float market capitalization is $107.35 billion as of Aug. 31, 2004, which is 70% of China’s total market capitalization.

The base value of the Dow Jones CBN China 600 Index is 20,000 at Dec. 31, 2000.