Why Does The Shanghai Stock Index Become An Important Basis For Judging Stock Changes?

The stock index, compiled by the Shanghai stock exchange, was officially launched in December 19, 1990.

The sample of the stock index is all in

Listed stocks, in which the newly listed stocks are included in the calculation range of stock index on the second day of listing.

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The weight is the total capital stock of the listed company.

Because the shares of Listed Companies in China are divided into tradable shares and non tradable shares, the flux is not consistent with the total capital stock. Therefore, the larger share capital has a greater impact on the stock index. Shanghai stock index often becomes a tool for large institutional investors to make the stock market deviate from the rise and fall of most stocks.

The issuance of the Shanghai stock exchange stock index is almost identical.

The change is synchronous. It is an essential reference for Chinese investors and securities practitioners to judge the trend of stock prices.