Exchange, applying the KOSPI 200 Index Calculation improved June

[Korea goyounghun financial newspaper reporter] shall apply from 9 June the Korea Stock Exchange's KOSPI 200 index calculation methodology, the improvements coming.

Exchange said that 29 days that this improvement applies to consider, such as industry classification considering international consistency in selecting constituents for market representation and enhance marketability.

See the Global Industry Classification System Configuration by stock selection criteria to be classified into nine industries.

See the economic sector of the GICS (Global Industry Classification criteria) commonly used for eight industries in Korea based on the existing standard industrial classification from global market share in nine industries. New industries are energy, materials, industrials, Consumer Discretionary, Consumer Staples, Health Care, Financial, real estate, information technology, telecommunication services, utilities and more.

Constituents during screening market capitalization and trading volume stocks such as applying the screening criteria the same for all industries, and also raise the cumulative market capitalization industries based upon specific stock selection criteria apply. This is to solve the problem that meet the criteria to only a few large-cap stocks with market capitalization of some bias.

Buffer reference portion for constituents turnover mitigation is also changed.

Buffer standards is that they put a margin on existing stocks apply less stringent standards than new entrants stocks. If this configuration item to be below the 200 stocks selected it will be added to the industries remaining stocks may as market capitalization among the existing stocks miseonjeong without distinguishing unique.

Special cases of newly listed stocks incorporated reference is eased. After the listing of the newly listed stocks 15 trading days of market capitalization possible within the plane of Special incorporation 50th of the total common stocks and merged to corporate transactions jeongjiil reflect pre-event to replace and consolidate new shares to have solved the rebalancing burden of the fund.

If the constituents company market capitalization rankings split when new entity incorporated to ease the criteria established subsidiary, within 80 to 100 minutes of KOSPI 200 constituents it will be incorporated into the constituents.

Flow rate change cycles, and a regular reflection rate is also twice a year (6, December) periodic adjustment, and apply a 1% actual ratio.

Exchange side that was expected by the market representative industries are incorporating more big events, it becomes more similar industries over the entire distribution market to be representative of the exponential increase.



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