1. Index Name and Code
Name: NEEQ ACTIVE STOCKS INDEX (NEEQ ASI)
Code: 899307
2. Base Date and Base Index
The base date of NEEQ Active Stocks Index is December 20th, 2018. The base divisor of the index are the adjusted market cap of all constituents as of close of the base date. The base index is 1000.
3. Index Constituent Weightings
3.1 Index Universe
The index universe of NEEQ Active Stocks Index includes all the board listed companies satisfying the following conditions:
□ The company is not in financial industry
□ The company has transaction since listing, with intraday trading days no less than 1/3 of its tradable trading days during the review period
□ The float shares of company is not zero
□ The company is not special treatment
3.2 Selection Criteria
The NEEQ Active Stocks Index constituents are selected as follows:
First Step: Rank all the companies in the universe by daily average trading values and daily average total market capitalization of the latest three months respectively in descending order and sum up the two ranks to get the overall rank.
Second Step: According to the overall rank, select top 50 companies as index constituents.
4. Index Calculation
NEEQ Active Stocks Index is calculated using a Paasche weighted composite price index formula, the formula is:
Current index= (Current adjusted market cap of constituents/ Base period)* 1000
Adjusted market cap= ∑(Price×Adjusted No. of shares×weight adjusted factor)
The weight cap of individual constituent is 5%.
5. Constituents Adjustment
NEEQ Active Stocks Index will be rebalanced quarterly. The constituents and weight adjustment are implemented after market close on the second Friday of March, June, September and December. Temporary adjustment can be made under certain circumstances if necessary.
6. Constituents Reserve List
For the sake of index consistency and transparency, NEEQ Active Stocks Index adopts a reserve list policy which is used to implement temporary adjustment between two adjacent periodical reviews.
□ Reserve list is created at each constituents’ periodical review. Usually, number of stocks in the list is 20% of the number of constituents.
□ If temporary adjustment is needed due to constituents’ delisting, merger, etc., stocks on the reserve list will be added to the index by rankings in turn.
□ If the number of stocks in the list is less than 50% of the original number, NEEQ and CSI will complement the list according to the reserve list policy and publicize the new reserve list timely.