The Shanghai Composite Index

Shanghai Composite Index

The Shanghai Composite Index, which is evaluated based on the performance of the Shanghai stock market, is an important index in China. It was launched on December 19, 1990 and is updated continuously throughout the trading day. The Shanghai Stock Exchange is the largest stock market in the nation and includes over 1,700 listed companies.

The index is a reflection of the overall performance of the stock market and the condition of the economy. It is considered to be a leading index in China and is used by investors to measure economic performance and the overall health of the stock market. It is also used as a benchmark for financial products such as mutual funds and indices in order to assess the performance of different stocks.

The index has a base number of 100, which is set as the reference date of December 19, 1990. The index is calculated by taking the average of the closing prices of all stocks listed in the Shanghai Stock Exchange.

The index components are divided into two categories - A shares and B shares. A shares are shares available to domestic Chinese investors, while B shares are stocks available to foreign investors.

Due to its importance, the Chinese government has taken steps to try and maintain the stability of the index. It often uses its purchase power to try and buy large amounts of securities in order to stabilize prices. The Chinese government also works to ensure that stock prices do not become too high or too low.

Despite these measures, the Shanghai Composite Index can be very volatile. For example, it dropped more than 40% in 2008, due to the global financial crisis and the U.S. credit market crash. It also experienced gains of more than 60%, from late 2014 to mid-2015.

Overall, the Shanghai Composite Index is an important index that is closely watched by investors and financial professionals both inside and outside of China. It has proven to be a reliable indicator of the performance of the Chinese economy, and as a result, is used by investors to gauge their level of risk for specific stocks.

Shanghai Stock Exchange Composite Index (SSE Composite Index) is the stock market index of the Shanghai Stock Exchange, which tracks the daily price performance of all A-shares and B-shares listed on the Shanghai Stock Exchange, and is split into two sections: can include A shares and B shares of all listed companies.

The SSE Composite Index consists of two sub-indices - the Shanghai Stock Exchange A-share Index and the Shanghai Stock Exchange B-share Index. The index represents the weighted average performance of all the listed companies on the SSE. When the index is above 6000 points, it is generally considered to have entered a bull market.

The SSE Composite Index began in 1990, the base value being 100 on December 19. The index crossed 1,000 points on August1, 1998 and 5,000 points on October 30, 2007. In 2007, the index fell 4.4%, the first negative return since 1997. However, the index resumed its uptrend in 2008 and reached the 6,000 point milestone on November 28, 2008.

On April 6, 2011, driven by Chinas current economic upbeat and stock market reforms, the SSE Composite Index opened above the 3000-point mark for the first time since August, 2009. On April 22, 2011 it surpassed 4,000 points, and continued to reach a record close of 5,452.30 points on August 4, 2015.

Since January 1, 2015, there have been three major declines in the SSE Composite Index. In late January and early February, the index dropped 12.69%. In mid-June, it plummeted to 3,507.01 points, down 17.4% from the previous high in early April. In late August, it fell again, 14.3% from the peak of 25. The index once again surpassed this mark during golden week of October and closed around 4,000 points.

As of now, Shanghai Composite is still in a bull market, having been the best performing market among the major indicators. It has come a long way from its lows in the financial crisis of 2008-09, to the record highs seen during the 2017-19 period. While it may not be as high as it was during these recent peaks, the index is still among the best performing in the world.