On 27 May, Shanghai Stock Exchange (SSE) and China Securities Index (CSI) Company Limited jointly announced that they would be adjusting the index samples of SSE 50, SSE 180, SSE 380, STAR 50. CSI Company Limited also concurrently announced that the index samples of CSI 300, CSI 500 and HKCSIHK 100 would also be adjusted. Following an assessment by the Index Expert Committee, five index samples on the SSE 50 would be replaced, and Hengli Petrochemical (600346.SH) is one of the new companies listed on the SSE 50.  This is a regular adjustment of the index samples and it would take effect after the market closed on 10 June.

According to the SSE official website, the SSE 50 Index takes reference from the index samples of SSE 180 and selects the most representative 50 sizeable securities with good liquidity on the SSE as samples. This reflects the collective performance of the leading enterprises with significant market influence on the Shanghai Securities Market.  In addition to the SSE 50 Index, Hengli Petrochemical is also currently a constituent of more than 170 exchange indices such as SSE 180, CSI 300, SSE 100 and MSCI China A-Share.

In terms of market value coverage of the Shanghai and Shenzhen stock markets, the SSE 50 and SSE 180 indices make up 36.95% and 60.28%, while CSI 300 and CSI 500 account for 54.96% and15.34%. 

Based on the closing price of the stock market on 25 May, the adjusted rolling P/E ratios of CSI 300 and CSI 500 are 12.2 times and 15.55 times respectively, while that of SSE 50 and SSE 180 are both 10.32 times. 

The inclusion of Hengli Petrochemical into the SSE 50 Index is a testament of its past achievements and also a push to its future development.