The Dow Jones China Index Series
The Dow Jones China Index Series of indexes consists of three indexes reflecting all the stocks that are listed in both the Shanghai and Shenzhen A Share exchanges. They are the Dow Jones China 88 Index, Dow Jones China A50 Index, and the Dow Jones China Total Stock Market Index.
The Dow Jones China 88 Index is made up of 88 stocks, consisting of 54 stocks from the Shanghai Stock Exchange (SSE) and 34 stocks from the Shenzhen Stock Exchange (SZSE). This index is weighted based on market capitalization and represents the competitive landscape in mainland China.
The Dow Jones China A50 Index is a modified float-adjusted market capitalization-weighted index that comprises the 50 largest stocks on the Shanghai and Shenzhen stock exchanges and applies risk window weighting. The A50 index is designed to reflect the performance of the top tier of China stocks, which are historically the most readily traded.
Finally, the Dow Jones China Total Stock Market Index is a modified float-adjusted, free-float market capitalization-weighted index that covers 95% of the available universe of China stocks. This index is designed to provide broad coverage of the Chinese market, including the locally listed A shares, B shares, H shares, and red chips.
All of these indexes serve as important benchmark for foreign investors who are considering investing in Chinese stocks. Investors can use these indexes to compare the performance of different stocks and spot market trends. However, it is important to note that all of these indexes are subject to market fluctuations, and should therefore be used only as a general guide.