The Privatization Indicator tracks the transformation of China's economy as it becomes more market-oriented by quantifying the degree of privatization in companies listed on the Shenzhen, Shanghai, and Hong Kong stock exchanges.

Next Release: Jul 2008

Current Value: 38.1

Methodology: The construction of the PVI is based on the percentage of state-owned common stock of a company and the associated percentage of that company’s market capitalization. Values are obtained by multiplying the state-owned percentage of a company’s total outstanding stock by the company’s total market capitalization. This step is repeated for all firms in the indicator. The resulting sum is then divided by the total market capitalization for all firms in the indicator.

Period of Coverage and Frequency: The indicator has been measured at regular intervals since December 2000. Until 2003, values were calculated on an annual basis; starting that year, they were presented on quarterly basis. Only listed companies for which information is available are included. Listed companies for which updated information is not available for a particular quarter are included in the indicator and updated as information becomes available.

Sources of Data: The data used to construct this indicator come from Xinhua Finance Limited's subsidiary Mergent and Bloomberg.

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