Analysts: Big listings bring more stability to A-share index
10 October 2007
The incorporation of large companies China Construction Bank and Shenhua China into the Shanghai Composite Index is altering the weighting structure of the benchmark index, Xinhua reported (in Chinese). Industry analysts said as large blue-chip stocks continue to enter the A-share market, the index will better reflect the country's economic performance. Currently the top 30 listing companies account for over 50% of the market's total value. The listing of more large enterprises on the market will dampen the effect that individual stocks like Industrial and Commercial Bank of China, currently the market's most highly valued company, have on the market as a whole.