Base Date: December 31, 2007
No. of Components: 80
Minimum Market Cap: USD $100 million
Minimum Daily Avg. Liquidity: USD $2,000,000
Sector Limit: 20% (16 companies)
Geographic Exposure: Mainland China
Rebalance Frequency: Semi-annual
Underlying Universe: Companies domiciled in Mainland China, listed on the Shanghai Stock Exchange, covered by MarketGrader.com.
All index components are selected based on their overall MarketGrader grade. Built on a scale between zero and 100, our overall grade is based on 24 fundamental indicators, or factors, which are divided into four categories, with six indicators each: Growth, Value, Profitability and Cash Flow. All of our indicators and our overall company grades are calculated daily for all companies under coverage.
All index constituents are equally weighted every time the index is rebalanced. No weight modifications or adjustments are made to the index between rebalance periods.
All index constituents must have a minimum total market cap of USD $100 million, a minimum 3-month daily traded value of USD $2 million and at least USD $50 million in aggregate trading volume in the trailing 12 months immediately before the index selection date. At least 25% of all index components (20 companies) must have a float-adjusted market cap that falls in the top market cap quartile of all companies listed on the Shanghai Stock Exchange.
No more than 20% of index constituents (16 companies) may belong to the same economic sector, based on MarketGrader’s Global Sector Classification.
The index is rebalanced twice a year, on the third Friday of March and September.
The MarketGrader Shanghai 80 Index seeks to follow the most fundamentally sound companies with the best growth prospects in Mainland China that are listed on the Shanghai Stock Exchange. Along with the MarketGrader Shenzhen 80 Index, it seeks to give local and global investors the opportunity to gain exposure to the best companies in China, with the best growth at a reasonable price (GARP) attributes, while acting on their views on an exchange-specific basis. Since the index is equally weighted, it gives each company an equal opportunity to contribute to its overall performance regardless of size, sector, business model or affiliation with the state.
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