The Shanghai Composite Index, also known as the CSI 100, is a weighted index reflecting the performance of the top 100 stocks listed on the Shanghai Stock Exchange. It is the primary indicator of stock market performance in mainland China, and is one of the five major indices of the Shanghai Stock Exchange (SSE).
The CSI 100 began calculating in December 1990. Before the index was launched, the Shanghai Stock Exchange Daily Composite Index (SSE DCI), which was published from June 1990 to December 1990, provided the basis for the CSI 100’s calculations. After the creation of the CSI 100 index, the SSE DCI discontinued publication.
The CSI 100 is composed of the top 100 stocks by market capitalization on the Shanghai Stock Exchange. All of the stocks in the index are representative of different industries, and when calculating the index, the movements of these stocks are given different weights. The weights of the stocks are based on the market capitalization of each individual stock.
The objective of the CSI 100 is to serve as an indicator of the overall performance of the Chinese stock market. It is also a tool that investors can use to gain insight into the fluctuations and trends of China’s financial markets.
The CSI 100 is widely used by investors, financial analysts, economists and academics in their research and evaluation of Chinese companies and the Chinese financial market. The index is also often used for benchmarking the performance of mutual funds and exchange-traded funds in mainland China.
Several securities and index funds have been created and managed based on the CSI 100. These funds, such as the ETF099, are popular investments for long-term Chinese investors, who can benefit from the comparatively strong performance of the SSE, even in times of market volatility.
Apart from the CSI 100, the Shanghai Composite Index, which tracks all the listed stocks on the Shanghai Stock Exchange, is also widely used to gauge the performance of the Chinese stock market. The Shanghai Composite Index has been growing steadily, having risen 1£7 over the past five years.
The CSI 100 is an important indicator of the performance of the Chinese financial market and its stocks. Its market capitalization-weighted methodology enables investors to accurately measure and track the changes in the Chinese financial market with clarity and depth.