Expert: the revised Shanghai composite index can better reflect the A-share market

category:Finance
 Expert: the revised Shanghai composite index can better reflect the A-share market


It is necessary to revise the Shanghai Composite Index. A spokesman for the Shanghai Stock Exchange said that the Shanghai Composite Index, which was released in 1991, is the first stock index in the A-share market, and the core compilation method has been used up to now. In recent years, there have been many voices from all walks of life for the revision of the Shanghai composite index compilation plan, and opinions such as Shanghai Composite Index distortion and failure to fully reflect the change of market structure have frequently appeared. During this years two sessions of the National Peoples Congress, market professionals, including representatives, proposed again to improve the compilation method of the Shanghai Composite Index.

According to Zhang Qiang, CEO of Huiyan Huiyu asset management company, the Shanghai Composite Index has been running for nearly 30 years since it was released. With the number of listed companies increasing, the original index compilation method makes the index more and more distorted, and it is difficult to express the correlation between capital market and macro-economy. Index setting is to better reflect the changes in the financial market environment. The more it reflects the market situation, the greater the significance for investors; only playing a symbolic role in the market, can the financial market be better served. In order to enhance the symbolic significance of the index to the market and better serve investors, the revision of the Shanghai composite index is imperative.

It is worth noting that the revised Shanghai composite index sample excludes the stocks subject to risk warning (st, * st), which will not affect the positioning of the composite index.

Chinas capital market has established a risk warning system. The stocks that are subject to the risk warning have higher risks, the fundamentals have greater uncertainty, the investment value is affected, and it is difficult to represent the mainstream situation of listed companies. Eliminating the stocks with risk warning will help Shanghai Composite Index to better play its investment function and better reflect the overall performance of Listed Companies in Shanghai stock market.

The sample range of many major international composite indexes only covers the vast majority of stocks in the market. For example, the Nasdaq composite index excludes the stocks in the Nasdaq market as the second listing place, and the Stoxx Europe whole market index and the Hang Seng Composite index only cover 95% of the market value. As of the end of May, the Shanghai composite index sample contained 85 stocks subject to risk warning, with a total weight of 0.6%. Therefore, excluding the stocks subject to risk warning will not affect their composite index positioning. Shanghai Stock Exchange.

In addition, it is increasingly necessary to include science and technology innovation board securities in the sample space of Shanghai Composite Index.

Generally speaking, securities listed in new sectors of the securities market usually need to be tracked and evaluated for a period of time before they are included in the market representative index. Since the listing of the first batch of science and technology innovation board securities on July 22, 2019, the Shanghai Stock Exchange has been continuously tracking and evaluating for nearly a year, and the overall operation of science and technology innovation board is stable. As of the end of May, there are 105 listed companies in the science and technology innovation board with a total market value of 1.6 trillion yuan, which has become an important part of the Shanghai stock market. It is increasingly necessary for science and technology innovation board securities to be included in the Shanghai Composite Index. The listed companies of science and technology innovation board cover many science and technology innovation enterprises. The inclusion of science and technology innovation board securities can not only improve the market representation of the Shanghai Composite Index, but also further improve the proportion of science and technology innovation emerging industry listed companies in the Shanghai Composite Index, so that the Shanghai composite index can better reflect the structural changes of the Shanghai stock market. Considering that the revision of the Shanghai composite index involves the adjustment of new shares entry time, science and technology innovation board securities are included into the Shanghai composite index according to the revised rules, which is conducive to ensuring the stability and continuity of the rules of the Shanghai Composite Index.

Chen Li, director of Chuancai Securities Research Institute, said that when listed companies on the scientific and technological innovation board are included in the Shanghai Composite Index, on the one hand, they recognize the enterprises on the scientific and technological innovation board, on the other hand, they make the Shanghai Composite Index cover the high-tech industrial companies representing the future of China, making the index more representative of the best and most promising enterprises in China. The implementation of the revision of the Shanghai composite index is planned to adopt a seamless connection mode, referring to the practice of international representative index compilation adjustment, that is, the effective date point of the index compilation scheme change is seamlessly connected with the previous trading day point, and the real-time point of the effective date is calculated based on the closing point of the previous trading day and the rise and fall of the sample stock on that day. Therefore, the implementation of the revision of the Shanghai Composite Index will not affect the continuity of the index and investors observation of market conditions. The Shanghai Stock Exchange said. (Wen Jicong, China Economic Daily, China Economic Net) source: Zhong Qiming, editor in charge of China Economic Net_ NF5619

Chen Li, director of Chuancai Securities Research Institute, said that when listed companies on the scientific and technological innovation board are included in the Shanghai Composite Index, on the one hand, they recognize the enterprises on the scientific and technological innovation board, on the other hand, they make the Shanghai Composite Index cover the high-tech industrial companies representing the future of China, making the index more representative of the best and most promising enterprises in China.

The implementation of the revision of the Shanghai composite index is planned to adopt a seamless connection mode, referring to the practice of international representative index compilation adjustment, that is, the effective date point of the index compilation scheme change is seamlessly connected with the previous trading day point, and the real-time point of the effective date is calculated based on the closing point of the previous trading day and the rise and fall of the sample stock on that day. Therefore, the implementation of the revision of the Shanghai Composite Index will not affect the continuity of the index and investors observation of market conditions. The Shanghai Stock Exchange said. (Wen Jicong, economic daily and China Economic Net)