SHSZ180 Full Return Index
The Shanghai Stock Exchange 180 Full Return Index (SHSZ180) is an index calculated using the full return of 180 constituents of the Shanghai Stock Exchange (SSE). The SHSZ180 index is designed to provide investors with an accurate real-time measure of the performance of the overall stock market in the Chinese mainland.
The composition of the index is based on the 180 most liquid stocks listed on the SSE. All stocks must have at least one year’s worth of trading history and must have a minimum trading value of at least RMB 1 million per day. The weights of each stock in the index are calculated using the free-float method, which means only the free-float market capitalization of each stock is counted.
The index has been revised in 2011, when the number of constituents was reduced from 250 to 180. This was done in order to improve liquidity and reduce the cost of index maintenance. The index also undergone a series of rebalance in 2012 and 2013, in which changes were made to the index weights in order to better reflect the current market.
The SHSZ180 index is known for its relatively conservative selection criteria, which helps to minimize the effect of market volatility and ensure the index returns reflect a broad market movement. As of April 2021, the index is composed primarily of financial, consumer, and energy stocks. The sector weightings of the index are as follows: financials (39%), consumer (19%), energy (11%), materials (10%), industrials (9%), healthcare (6%), and utilities (5%).
Investors who are interested in investing in the Chinese stock market and getting exposure to the SHSZ180 index can access it by investing in exchange-traded funds (ETFs) or index-linked derivatives. ETFs that track the SHSZ180 index include the SSE 180 ETF, the SZSE 180 ETF, and the SZSE 180 Enrichment Fund. Derivatives available on the index include futures, options, and structured products.
The SHSZ180 index is a valuable tool for investors who are looking to gain exposure to the overall Chinese stock market. The index provides investors with a broad, diversified exposure to Chinese stocks and is denominated in yuan, making it easier for international investors to access the Chinese stock market. As the Chinese stock market continues to grow, the SHSZ180 index is expected to become increasingly popular with both domestic and international investors.