FRANKFURT, Sept 2 (Reuters) - German exchange operator
Deutsche Boerse is due to announce new entrants to
the blue-chip DAX index on Friday, part of the index's
biggest ever overhaul https://www.reuters.com/article/us-deutsche-boerse-dax-idUKKBN2840J0.
The index will expand to include Germany's 40 largest listed
companies, from the 30 biggest currently, effective Sept. 20.
Prompted by the Wirecard accounting scandal, Deutsche
Boerse has also tightened criteria for inclusion in the index.
Here's an overview of the changes:
* The DAX expands to 40 from 30 members, and the mid-cap
index shrinks to 50 from 60 members. The small-cap SDAX
remains unchanged at 70 members.
* Analysts see as possible candidates to join the DAX
, Airbus, Zalando, Siemens
Healthineers, Symrise, Porsche SE
, Sartorius, Brenntag,
Hellofresh and Qiagen
* As of December 2020, all new DAX candidates are required
positive earnings before interest, taxes, depreciation, and
amortisation for the past two financial years.
* As of March 2021, all companies in any DAX index are
publish audited annual financial reports and quarterly
statements. After a 30-day warning period, failure to comply
results in immediate exclusion from the index.
* Also as of March 2021, index members must comply with the
recommendations of the German Corporate Governance Code that
require the formation of an audit committee in the supervisory
board. There is a transition period for existing members.
* From this year, the indexes are scheduled for review twice
year, in March and September. Previously, the review took place
once a year in September.
* From this month's review onward, membership will be based
market capitalisation, while exchange turnover will no longer
play as significant a role.
(Reporting by Tom Sims and Anika Ross; Editing by Jan Harvey)