The CSI 200 Index is comprised of the top 200 companies within the Chinese A-share market based on full market capitalisation. The index is maintained by the Standard & Poors indexing team and is a member of its global equity family.
The CSI 200 Index constitutes the underlying benchmark for a significant number of funds and exchange traded funds (ETFs) that are based in China and also for funds and ETFs that are listed internationally, such as the db x-trackers CSI 200 ETF listed in the USA.
The CSI 200 Index is a good benchmark for those looking for exposure to the Chinese A-share equity market, as it is an effective tool for measuring the performance of the top listed companies in this market.
In light of the potential for above-average returns within the Chinese A-share market, particularly following the CSRC’s Qualified Foreign Institutional Investor (QFII) program, the CSI 200 has garnered great investor interest.
The CSI 200 is designed to measure the performance of the top 200 companies within the Chinese A-share market, which qualifies it as one of the most commonly used gauges of market performance in this market. This index has a historical track record which provides a valid basis for predicting its future performance.
The movements of the CSI 200 index are determined by fundamental drivers such as the business performance and stock movements of the constituent companies and also by investors’ sentiment and market expectations as to the business environment, economic outlook and policy implementation.
The multiple influences on the movements of the CSI 200 makes it a good proxy for the overall performance of the A-share market. Hence, this index is a good indicator of market-wide sentiment and risk appetite.
In conclusion, the CSI 200 Index gives investors exposure to the performance of the top 200 companies within the Chinese A-share market and provides a good measure of the sentiment and outlook of the Chinese A-share market as a whole. The performance of the CSI 200 is determined by both fundamental drivers, such as the performance of its component companies, and investor sentiment, which makes it an ideal tool for measuring the performance of the market. The index is used by investors around the world to gauge the performance of the Chinese market and to make informed investment decisions.