First, the fast-moving Chinese economy and listed companies in China need more accurate cameras.
Nearly 30 years ago, as the first stock index in A-share market, Shanghai composite index was first published and its core compilation method is still used up to now. However, with the deepening of reform and opening up and the development of capital market, the number of Listed Companies in China has grown steadily, and the quality has continued to improve, playing an increasingly important role in the service supply side structural reform and high-quality economic development.
At present, there are more than 3800 listed companies in China, covering all 90 industries in the national economy. Among them, in 2019, the main board company of Shanghai Stock Exchange realized a total operating revenue of 37.21 trillion yuan, accounting for nearly 40% of the total GDP of the country; the main board of Shanghai Stock Exchange gathered a large number of high-quality blue chip enterprises, which played an important role in Chinas economic development; small and medium-sized enterprises with market value also took the initiative to adapt and actively transform, and their performance was also bright.
It can be said that more than 3800 listed companies are the component index of Chinas economy, reflecting the overall trend of macroeconomic stability. But reflected in the index, due to the phenomenon of continuous fluctuation and high volatility in the initial stage of IPO in A-share market, the new shares are often included in the price limit and driven by the negative index change in the future valuation regression, which can not objectively reflect the inclusion of high-quality listed companies, showing a certain degree of index distortion.
Secondly, the A-share market with optimized industrial structure needs to add representative seats for new economic enterprises.
In recent years, with the acceleration of the transformation and upgrading of the macro-economic structure, the scale of A-share market has been growing rapidly, while the internal structure has undergone profound changes, and the innovative economy continues to join in, which naturally needs to have a place in the index compilation scheme.
In the revision of the preparation plan of Shanghai Composite Index, related securities of science and Technology Innovation Board will be included in the index according to the new preparation plan, and science and technology innovation 50 index will also be released.
On the one hand, the scientific and creative attributes of the capital market will be fully displayed, which will also enable the Shanghai Composite Index to better reflect the changes in the industrial structure of Companies in the Shanghai stock market; on the other hand, it will encourage scientific and creative enterprises to strive to go to the A-share market, and truly become the basic plate for the high-quality development of the real economy.
Third, the A-share market, which focuses on market-oriented development and the concept of big insurance, needs to show the severe side to the laggards.
In this years May 15 national Investor Protection Publicity Day, chairman Yi Huiman said, a virtuous circle of capital market needs to be in and out, and the best survive.
The author believes that the majority of ST shares have high risks and the fundamentals are uncertain, which is difficult to represent the mainstream situation of listed companies. In fact, the revision of the index compilation method warns the laggards in the A-share market that being excluded from the index is only the first step. If the quality cannot be improved in time in a long term, exiting the market may be the end of their A-share journey. At the same time, the revision of the preparation method is also a reminder for investors. When investing in high-risk companies, investors must make a full assessment of the company and their own tolerance.
As we can see from the micro perspective, the index is indeed the most intuitive observation point for market changes and expectations, and the rationality of its design is crucial. I believe that the optimized Shanghai composite index can more accurately reflect the component index of Chinas economy and become the precise origin of value investment behavior.
Extended reading weighs! Shanghai stock index changed science and technology innovation 50 index also came (interpreted by the big guys). Shanghai Composite Index welcomes overhaul and promotes barometer of stock market. In fact, what was discussed in the special consultation meeting before the plan of Shanghai Stock Index welcoming the reform came out? Source: responsible editor of Securities Daily: Yang Bin_ NF4368