CSI 700 Index

The China Securities 700 Index is a stock market index made up of the top 700 companies listed on the Shanghai and Shenzhen Stock Exchanges. It is a free float-adjusted market capitalization-weighted index and is composed of stocks representative of A-share markets. It is designed to reflect the performance of China’s large-cap equities market and is a leading benchmark for tracking the performance of the Chinese market.

The history of the China Securities 700 Index dates back to the establishment of the Shanghai and Shenzhen Stock Exchanges in 1990. Since then, the Chinese government has introduced a variety of measures to promote the development of the stock markets, including the establishment of the China Securities Regulatory Commission (CSRC), the gradual liberalization of the Chinese financial markets, and the easing of entry barriers for foreign investors. Over the years, the China Securities 700 Index has become a widely used benchmark for investors and traders seeking to access the Chinese stock markets.

The index tracks the performance of the top 700 companies listed on the Shanghai and Shenzhen exchanges. Companies included in the index must meet certain eligibility requirements, including market capitalization and liquidity. The index is rebalanced and reconstituted annually in December.

The index has proven to be a strong performer over the years, with average annual returns of over 10% since 2000, and one-year returns of over 30% in 2016. This strong performance is due to the large-cap focus of the China Securities 700 Index, which includes many of the largest and most established companies in China. Moreover, unlike many international stock markets, China’s stock markets tend to be less volatile and less prone to sudden corrections, making the index an attractive option for those seeking exposure to stocks from the world’s second-largest economy.

Overall, the China Securities 700 Index is a reliable and easily accessible benchmark for those seeking to gain exposure to the Chinese stock markets. With its large-cap focus, the index can provide investors with access to some of China’s largest and most established companies, reducing the risk associated with investing in a single stock while providing greater exposure to the Chinese growth story. As the Chinese markets experience increasing liberalization and the government continues to focus on reform and development, the China Securities 700 Index is likely to remain an important tool for investors looking to maximize returns while minimizing risk.

The SSE 700 Index of China, also known as SSE Composite Index, is one of the major stock market indices of China and was published and activated by the Shanghai Stock Exchange (SSE) on December 30th, 2005. This index consists of the selection of most representative stocks in the SSE’s broad-based Stock Market and the SSE 180, the SSE 50, SSE LargeCap 500 and SSE MidCap 800. The index has a base value of CNY 100 on December 30th, 2005.

The stocks contained in the SSE Composite are chosen on the basis of float-adjusted market capitalization, while taking into account the sector and size representation and turnover in the SSE market. The index has a base value of 100 on December 30th, 2005, and a base market capitalization of CNY612.7 billion. Stocks are weighted by float-adjusted market capitalization.

The SSE 700 index aimed, when launched, to track the “H-share” large-cap universe and has a liquidity-adjustment weight-based composition. It has a diversified weight-based composition, a greater sector diversification, and is more representative of the stock market in terms of industry sectors than the SSE Composite Index.

As of June 1st, 2020, the SSE Composite index gives exposure to 702 stocks, it has a base market capitalization of CNY 8,538.3 billion, and its current value is 3,579.17. It has a 3.35% annualized yield and a total return of -6.23% for the past year. This index is an equity index which monitored the changes of the market capitalization and performance of the eligible stocks of the Shanghai Stock Exchange. It serves as a broad based bellwether of China’s overall stock performance. The SSE 700 Index gives insight into not only the stocks, but also the macroeconomic performance and investor sentiment in China.