The Shenzhen Stock Exchange has revised the scheme for compiling the Growth Enterprise Market Index, introducing a mechanism to exclude companies with negative ESG factors.

According to the Securities Times APP, on April 30, the Shenzhen Stock Exchange issued a public notice regarding the revision of the compilation plan for the ChiNext Index. In order to further improve the index compilation method and enhance the investability of the index, the Shenzhen Stock Exchange and Shenzhen Securities Information Co., Ltd. have decided to revise the compilation plan of the ChiNext Index as follows: introducing an ESG negative exclusion mechanism to exclude stocks with a China Securities ESG rating below B grade at each regular adjustment; setting a weight adjustment factor in the index calculation to ensure that the weight of a single sample stock does not exceed 20% at each regular adjustment. This revision will be implemented starting from June 16.