Shenzhen Component A Share Index

The Shenzhen Component A-share Index is a major stock index based on the A-shares listed and traded on the Shenzhen Stock Exchange (SZSE). The index includes A-shares of all issued A-share listed companies, providing investors with a reflection of the price performance of the overall A-share market.

The Shenzhen Component A-share Index began December 11, 1991 and was initially calculated using the price-weighted method, with a base level of 100 points. However, the statistical calculation formula was adjusted on December 11, 2007 and the base level was reset to 1000. The index is published daily on the back page of Shanghai Securities News and the China Financial Futures Exchange website.

The Index provides valuable data for investors to track and measure the performance of the Shenzhen Stock Exchange A-shares. As of the close of 2016, the index included all of the 796 A-share listed companies, encompassing all of the 13 industry groups on the Shenzhen exchange, including the Mining & Smelting, Real Estate, Medical & Health Care, Banking, Securities, Wholesale & Retail, Information Technology, Electrical Engineering & Electronics, Construction Materials & Equipment, Energy & Chemical Engineering, Food & Beverage Processing, Non-Ferrous Metal Smelting & Processing, and Light Industry & Textiles sectors.

According to official website of China Financial Futures Exchange, Chinas leading futures exchange, the Shenzhen Component A-share Index provides investors with a reliable measure of the performance of the Shenzhen Stock Exchange, reflecting the overall development trend of the A-share market. The Index has a low base value (1000), giving it higher sensitivity than other benchmarks at a similar level. The Shenzhen Component A-share Index is viewed as an important indicator of the performance of Chinas A-share market, and a reliable reference for market participants in trading related CFDS, options, futures and other financial products.

The two major constituents of the Index are the China Petrochemical Corporation and the China Shenhua Energy Co., Ltd., both of which are included on the Hang Seng China Enterprises Index. The weighted N weight of these two stocks stands at 0.374% and 0.267% respectively. Other constituents of the Index include the China Telecom Corporation Limited, the state owned China Merchants Bank, and the Ping An of China Insurance Company.

In terms of the dynamics of the Index, the Shenzhen Component A-share Index is affected by changes in the issuing and trading of A-shares on the Shenzhen Exchange, as well as changes in the economies of the localities where the constituent companies are based. For example, changes in the overall corporate performance of the component companies, macroeconomic conditions such as domestic economic policies, and changes in international financial markets such as the foreign exchange rate all have an impact on the performance of the component stocks and therefore the performance of the index itself. As a result, any changes in the A-share market are reflected in the Index.

In addition, the Shenzhen Component A-share Index is calculated based on the price of the constituent stocks, without consideration of the volume traded. This means that the index can be easily affected by changes in the external environment or in investor sentiment, regardless of the actual trading volume of the component stocks. The index has therefore become a benchmark for gauging the sentiment of A-share investors and is seen as an important indicator of investor sentiment in the Shenzhen market.

The Shenzhen Component A-share index is an index that is used to measure the stock value of the Shenzhen Stock Exchange in China. This index was launched on July 1, 1990 and covers all stocks listed on the SSE, including those listed on the ChiNext board, the regions Nasdaq-style board for high-growth and high-tech companies. The index is a broad stock market index and is seen as a barometer of the Chinese economy.

The Shenzhen Component A-share index consists of two components: the Shenzhen Component A-share restricted index and the Shenzhen Component A-share expanded index. The restricted index consists of all stocks listed on the Shenzhen Stock Exchange which are available to investors in mainland China. This includes A-shares, which are denominated in the Chinese currency, Renminbi. The expanded index includes stocks listed on the Shenzhen Stock Exchange which are open to all investors, regardless of where they reside. This includes Hong Kong and Overseas listed stocks which are traded in foreign currencies.

The Shenzhen Component A-share index is made up of over 1400 stocks, and is designed to capture the performance of the broader Chinese stock market. It is a market-weighted index and is updated on a daily basis. The index is a valuable tool for understanding the performance of the Chinese stock market, since it includes stocks of all sizes, from mega-cap blue chips to small caps. It is also used to benchmark investments in the Chinese stock market, as well as to provide insight into the overall trends in the Chinese economy.

The index is also used by analysts to forecast the future performance of the Chinese economy. For example, when the index is increasing, it reflects the overall positive sentiment of investors towards the market, which can then lead to increased investment. On the other hand, if the index is declining, it can suggest a negative sentiment towards the market, which can lead to weaker economic performance.

In conclusion, the Shenzhen Component A-share index is a valuable tool for understanding the performance of the Chinese stock market and for providing insight into the future performance of the Chinese economy. It is a market-weighted index and is composed of over 1400 stocks, and is updated daily. The index is tracked by analysts and used to forecast the future of the Chinese economy.