Shanghai Stock Exchange Mulls First Revamp of Benchmark in 30 Years
- Overhaul may boost technology stocks, reduce banks, energy
- Recalculation is aimed at better reflecting evolving economy
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The Shanghai Stock Exchange is considering the first overhaul of its benchmark index in three decades so that it better reflects China’s increasingly high-tech economy, according to people familiar with the matter.
The exchange is planning to adjust the timing for newly listed stocks to be included in the index and remove some chronically loss-making shares, said two of the people, who asked not to be identified as the matter is private. As part of a long-term overhaul under consideration, the exchange may also calculate a company’s market value for the index based on its free float rather than total outstanding shares, said the people.