CBV Index

CBV-Index, or Corporates and Businesses of Vietnam Index, is a market index containing the stocks of 50 leading corporations of Vietnam.

CBV-Index, or CBV LargeCap, together with CBV MidCap and CBV SmallCap form the broader CBV Total. All stocks in these indices are traded on the two Vietnam stock markets, Ha Noi and Ho Chi Minh City Securities Trading Centers.

History

At the beginning of 2007, CBV-Index was introduced to the financial market of Vietnam by Bien Viet Securities JSC. The Index is known as the first and only index that reflects the performance of the whole stock market of Vietnam. In March, 2007, CBV 20 and CBV 10 which form the part of CBV-Index was published in order to meet the demand for Index investors in Vietnam. CBV MidCap, CBV SmallCap for Mid-Cap and Small-Cap companies also came out at the same time. In April, 2007, the Council of Corporates and Businesses of Vietnam Indices was founded.

election Criteria

The components of the CBV-Index are selected by its council. The council selects the companies in CBV-Index so that they meet the following criteria:

*The companies must be listed in either Hanoi and Ho Chi Minh stock exchange centres (HASTC and HOSTC)
*Large Market Capitalization: Total market capital of the company should be greater than 500,000,000,000 VND
*High liquidity: the ratio of annual dollar value traded to float adjusted market capitalization should be 0.4 or greater-Sector representative: Corporations are representatives of main economic sectors, sector balance is maintained.
*Types of corporations: Corporations must be operating companies; holding companies will not be listed in CBV-Index portfolio.

Methodology

CBV-Index measures the change of average stock market prices using float adjusted market capitalization method.

The percentage of shares available for public investors- public float (IWF- Investable Weight Factor) will be calculated using the following formula:

:::

Then, float adjusted market capitalization index will be calculated according to the following formula:

:::Pi is market price of share i, Qi is the number of listed shares. IWF if the the percentage of shares available for public investors, Divisor (D) is the index divisor. Divisor D will be adjusted so that CBV index will not be affected as the result of issuance of additional shares, addition of newly listed companies or removal of listed companies in CBV index.

Components

[http://www.cbv.vn/en/index.php?option=com_content&task=view&id=152&Itemid=141 List of CBV-Index Companies]

ee also

*CBV Sectors
*CBV 20
*CBV 10
*CBV MidCap
*CBV SmallCap

External links

* [http://www.cbv.vn/en/index.php?option=com_content&task=view&id=129&Itemid=1 Overview of CBV-Index from CBV]
* [http://www.cbv.vn/en/index.php?option=com_content&task=blogcategory&id=22&Itemid=90 Detailed introduction about CBV-Index from CBV]