The CSI 300 Index eliminated the non-floating shares in the listed companies’ capital stock and the shares that are not negotiable due to strategic shareholding or other reasons to reflect the price change of the actually tradable shares on the market. The remaining part of the capital stock is called the free-floating capital stock, or the free-float.
Among a company’s outstanding total issued A shares, the shares with sales limit within the sales limit period and the following six types of shares are the shares that are not negotiable:
(1) the shares held for a long term by the founders, family and senior executives of a company;
(2) the state-owned shares;
(3) the shares held by strategic investors;
(4) the frozen shares;
(5) the limited shares held by employees;
(6) the cross-holding.
The shares with sales limit specified in a listed company’s announcements and the shares above 5% held by the above six types of shareholders and their concerted actors are deemed as the non-free-floating capital stock.
Source: China Securities Index Co., Ltd.
