What’s new: The Shanghai Stock Exchange will launch its first major revamp of the benchmark Shanghai Composite Index on July 22, the bourse said (link in Chinese) Friday.
The first major change to the index since it was launched three decades ago will expand it to include stocks listed on the Shanghai STAR Market, as well as depository receipts issued by red chip companies — Chinese mainland-based firms incorporated overseas.
Stocks with Special Treatment (ST) status — a tag given to firms facing regulatory issues or financial distress — will be removed from the index.
The background: The Shanghai Composite Index has not been revamped since it was introduced in 1991.
The changes are aimed at helping investors better follow market fluctuations through the index that will more fully reflect the changes in the capital market, the bourse said (link in Chinese).
Related: Shanghai Bourse to Evaluate Major Revamp of Benchmark Index
Contact reporter Tang Ziyi (ziyitang@caixin.com) and editor Flynn Murphy (flynnmurphy@caixin.com)
