There are many stock indexes in China, and many investors are dazzled. What is the meaning of so many indexes and how to choose stocks? What's the meaning of each? The following is an introduction to the more important stock indexes in China's stock market. I hope it will be helpful to you.
The most famous stock index released by Shenzhen Stock Exchange is the Shenzhen Stock Index, or "Shenzhen Stock Index" for short. We often hear in the stock market news that "how many points did the Shanghai Composite Index close today, and how many points did the Shenzhen Composite Index close today." Why should the Shanghai Composite Index keep up with the Shenzhen Composite Index? Because the original orientation of Shenzhen Stock Exchange is to issue small and medium-sized stocks, but compared with large stocks, there are many poor students in small and medium-sized stocks. The Shenzhen Stock Index represents the most important index in the Shenzhen market.
The Shenzhen Composite Index had only 40 constituent shares at the beginning, including: Midea, Gree, Vanke A, Wuliangye, Yunnan Baiyao and other well-known enterprises. However, as more and more companies are listed on the Shenzhen Stock Exchange, these 40 stocks can no longer represent the overall level of the Shenzhen market, so the Shenzhen Stock Index has been expanded. Today, the Shenzhen Stock Index has become an index that combines large, medium and small cap stocks with a smaller overall style.
In addition to the Shenzhen Composite Index, there is a more famous index in the Shenzhen market, called the Shenzhen 100 Index. It is composed of the stocks with the largest market capitalization and the most active transactions in Shenzhen market. At present, the Shenzhen 100 Index represents the trend of large cap stocks in the Shenzhen market, while the Shenzhen Composite Index represents the trend of small cap stocks.
The Shanghai Stock Exchange also has its own component index, the most famous of which are the Shanghai Stock Exchange 50 Index and the Shanghai Stock Exchange 180 Index. Both indexes are large cap indexes. Although there are few constituent stocks in these two indexes, they have a great impact on the market. The SSE 180 index is the index that best represents the core high-quality listed companies of the SSE. Its circulation market value accounts for half of the circulation market value of the SSE, and the industry distribution is relatively uniform.
The constituent stocks of the Shanghai Stock Exchange 50 Index are updated every six months. Each update will kick out the stocks whose performance fails to meet the standards, and then select the stocks whose performance meets the standards, much like the last elimination system.
Then you may ask, the above indexes are the constituent stock indexes of Shanghai Stock Exchange and Shenzhen Stock Exchange respectively. Have you got through the stock pool of Shanghai Stock Exchange and Shenzhen Stock Exchange to select the constituent stock indexes? Of course, China Securities Index Co., Ltd. specializes in the development of indexes. Now, most of the well-known indexes on the market are developed by their families. The first index launched by China Securities Index Company is the famous CSI 300 Index. It is the first index to span Shanghai and Shenzhen stock markets. The CSI 300 Index covers about 60% of the market value of the Shanghai and Shenzhen Stock Exchanges. It can reflect the overall trend of the A-share market more comprehensively and truly than the Shanghai Stock Exchange Index. Since the CSI 300 Index is roughly the superposition of the constituent stocks of the Shanghai 180 Index and the Shenzhen 100 Index, the CSI 300 Index is also a large and medium-sized stock index.
