Shenzhen Component Index
The Shenzhen Component Index (SZSE100), also known as the SZE Component Index, is a stock market index of the Shenzhen Stock Exchange that tracks the performance of the top 100 companies listed on the Shenzhen Stock Exchange. It is a relatively new index and was first launched on June 29, 2004. The index is weighted by company size, taking into account the market capitalization of each company.
The Shenzhen Component Index is an important index in China’s financial markets, and serves as a benchmark for a number of IPOs, corporate mergers and acquisitions, as well as other venture capital investments in the region. As of 2019, the index had a current base of 3,000 points and included 136 companies.
The Shenzhen Component Index is seen as the Chinese equivalent of the S&P 500, with the components chosen by the exchange itself after a rigorous selection process. The selection criteria include the liquidity of stocks, variations in share prices and volume, and past returns. The index is also weighted by company size, with each company’s weight in the index calculated according to its market capitalization.
The Shenzhen Component Index is an important benchmark for the performance of the stocks listed in the Shenzhen Stock Exchange, with the top performing stocks earning a higher weighting and helping to boost the index’s performance. It also helps investors to identify potential stocks to invest in, and to understand how broader market indicies are doing.
The index is published as a free daily report and is also available on the exchange website. The report contains the full list of stocks that make up the index, as well as their weightings and performance over the previous trading day. The index is also available on many financial information websites, where it can be compared to other similar indices such as the Hang Seng Composite Index, Hang Seng index and Shenzhen Stock Exchange Composite Index.
Overall, the Shenzhen Component Index serves as an important benchmark for investors, providing access to an important market in China. It provides investors with a way to monitor the performance of the markets and to identify potential stocks for investment. Furthermore, the index also helps to indicate the health of the exchange and provides an insight into the broader economic situation in the region.