China’s CSI 300 Index leans towards tech, adding the likes of Cambricon, Empyrean and Hygon in latest review

Name: An unwinnable conflict? The US-China trade war, 5 years on
Uploaded: 2023-11-27T06:30:08.000Z
Duration: 14 min 45 s
Description: An unwinnable conflict? The US-China trade war, 5 years on

Index compiler China Securities Index is making a conscious effort to increase the representation of tech firms in the benchmark gauge of onshore traded companies

The CSI 300 Index has fallen more than 9 per cent this year, making it among the worst-performing key equity gauges globally

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Chinese firms involved in making artificial intelligence chips, designing chips and manufacturing high-end processors for servers and computers will be added to the CSI 300 Index of onshore traded companies. Photo: Reuters

Zhang Shidongin Shanghai

Published: 2:30pm, 27 Nov 2023Updated: 3:44pm, 27 Nov 2023

The compiler of China’s benchmark index of 300 leading companies traded on the Shanghai and Shenzhen stock exchanges is adding tech stocks to increase the representation of the sector, deemed vital to the nation’s economy.

Artificial intelligence chip maker Cambricon Technologies, chip designer Empyrean Technology and high-end processor maker for servers and computers Hygon Information Technology will join the CSI 300 Index of China’s yuan-traded stocks starting next month, China Securities Index said in the latest biannual review.

Medical equipment maker Shanghai United Imaging Healthcare, Avic Airborne Systems, gold producer Zhongjin Gold and eight other companies will also be added to the stock gauge after the market close on December 8, China Securities Index said in a statement. At the same time, 14 companies, including property developer Gemdale and coking coal producer Shanxi Meijin Energy, will be removed.

China Securities Index also unveiled the rebalancing results of the CSI 500 Index and the CSI 1000 Index by making similar adjustments to the constituents. The index compiler, a joint venture between the Shanghai and Shenzhen exchanges, provides and manages hundreds of indices in China.

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“After the change in the constituents, the major index members will be more concentrated on the transition of the real economy and tech innovation,” China Securities Index said. “The number of members engaged in information technology, industrial and telecoms services will increase, and that will boost their representation in the indexes.”

China is trying to shift its reliance from credit-fuelled investment to technology and consumption as the main drivers of economic growth under the nation’s tech self-sufficiency drive amid curbs on tech exports by the US.