- The Shenzhen Stock Exchange announced the revision of the "Compilation Plan for the ChiNext Composite Index" on July 11, 2025, introducing two exclusion mechanisms: monthly exclusion of risk warning stocks and ESG negative exclusion mechanism[3][6][11] - The monthly exclusion mechanism for risk warning stocks removes sample stocks that are announced to be under risk warning from the index starting from the next trading day after the second Friday of the following month. Stocks with risk warnings revoked are added back to the index under the same timeline[6][14] - The ESG negative exclusion mechanism removes sample stocks with ESG ratings downgraded to C or below from the index starting from the next trading day after the second Friday of the following month. Stocks with ESG ratings upgraded above C are added back to the index under the same timeline[6][14] - After the revision, the ChiNext Composite Index includes 1,316 sample stocks, covering 95% of ChiNext-listed companies and 98% of total market capitalization. The top three industries are industrials (32%), information technology (26%), and healthcare (12%). High-tech enterprises account for 92%, strategic emerging industries for 79%, and advanced manufacturing, digital economy, and green low-carbon sectors for 74%[6][11] - The monthly exclusion cycle enhances timeliness compared to the usual semi-annual index adjustment, while maintaining operational feasibility for passive products tracking the index[11] - Short-term impacts may include passive fund selling pressure on excluded stocks, while long-term effects could foster "survival of the fittest," encouraging listed companies to focus on financial stability and ESG performance, driving market valuation systems toward high-quality development[11]