NEW YORK, Oct. 7, 2007 — Dow Jones Indexes, a leading global index provider, today announced that the fast entry rule will be applied to the Dow Jones China 88 Index methodology, a blue-chip index measuring the performance of the largest and most liquid stocks traded on the Shanghai and Shenzhen stock exchanges.
Effective with the open of trading today, October 8, 2007, Initial Public Offerings (IPO) ranked among the top 30 by free-float market capitalization based on the most recent selection list respectively will be added to the index two days after its IPO date to replace the lowest-ranked component. The change will reflect the performance of the Chinese stock market more accurately as an increasing number of red-chips, H shares and large IPOs are being listed at the China domestic market.
The Dow Jones China 88 Index is reviewed semi-annually, in March and September. All stocks are classified based upon the Industry Classification Benchmark (ICB), a four-tier hierarchy that includes ten Industry Groups, 18 Supersectors, 39 Sectors and 104 Subgroups.
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.
The methodology, as well as a full list of components, weightings and values of the Dow Jones China Indexes, is available at www.djchinaindexes.com