Shenzhen 100 Price Index Introduction
The Shenzhen 100 Price Index (SZ100) is a Chinese index that tracks the stock prices of 100 of the largest companies listed on the Shenzhen Stock Exchange. It is compiled by the Shenzhen Stock Exchange and began on December 10, 1991, with a base value of 100. The SZ100 is also a component of the larger SSE Composite Index.
The SZ100 represents companies from various sectors including financials, real estate, infrastructure, and technology. The index is a weighted index, meaning each component of the index has its own specific weight, or importance. This weighting is determined by the market cap of the company and the individual company’s contribution to the SZ100 index.
The SZ100 is a price-weighted index. The price of each component is first calculated and then added up to form the overall index. This means that the stocks with the highest price will have the largest amount of influence over the index. The index is also price-weighted and adjusted for dividends and stock splits. This means that if a stock is split, the overall index will be adjusted accordingly.
The SZ100 is an important economic indicator used by Chinese financial markets to measure the health of the economy. The index can be used to analyze the performance of companies that are listed on the Shenzhen Stock Exchange, as well as provide an indication of the overall market sentiment. It is also used as a benchmark for investors who want to measure their performance relative to the Shenzhen stock market.
Since its inception, the SZ100 has experienced some major market movements. During the late 1990s and early 2000s, the SZ100 experienced a period of rapid growth. This was followed by a period of decline from 2007 to 2009 during the global financial crisis. Since then, the index has recovered and is currently trading over the 3000 level.
The Shenzhen 100 Price Index is a good indicator for investors looking for a way to track the performance of the Chinese stock market. It provides insight into the performance of companies listed on the Shenzhen Stock Exchange and is an important indicator of the overall market sentiment. Additionally, it can be used as a benchmark for investors looking to compare their own performance against the index.