CSI 300 Index

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The CSI 300 Index is a benchmark of the biggest companies listed on either the Shanghai or Shenzhen stock exchanges. It is a free-float weighted index composed by China Securities Index Co., Ltd. with the 300 largest A-Shares listed on the Shanghai Stock Exchange (179 stocks) and Shenzhen Stock Exchange (121 stocks).[1] It is the first stock index launched jointly by China's two stock exchanges.[2]

Overview

The CSI 300 Index is a capitalization weighted index, like S&P 500 Index, although it uses a rounded-up percentage of tradable shares to calculate the market capitalization of a component company, unless the percentage is less than 10% of the total number of shares. For example, if a company has 38% of its total shares already tradable in the market, a rate of 40% would be used to come up with its weighting within the index.[3] The CSI 300 Index was set at 1,000 on December 31, 2004.[4] as its base, and it is currently valued at 3925.04 (May 8, 2008). It is also estimated that the turnover of the 300 component companies is approximately 55 percent of all A-shares listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange. Daily turnover on both exchanges was reported as 193.4 billion yuan for the first eleven months of 2007.[5], the CSI 300 Index’s component stocks should have traded around 100 billion yuan a day during the same period.

History

The concept of the CSI 300 Index was first introduced by the Shanghai Stock Exchange in 2001. Through the joint-project among the China Securities Regulatory Commission, Shanghai Stock Exchange, and Shenzhen Stock Exchange, it was officially announced as a new benchmark cash stock index on April 8, 2005.

In December 2015 it was reported that CME Group planned to launch a futures contract on the CSI 300 Index to investors outside China through a partnership with China Securities Index Co.[6]

CFFEX CSI 300 Index (IF) Futures Contract

CFFEX CSI 300 Index futures launched in April 2010 on the China Financial Futures Exchange. The contracts have become equity benchmarks in the Asia-Pacific.

See Also

References

  1. Shanghai Shenzhen CSI 300 Index profile. Bloomberg.
  2. "CSI 300 Index Introduction”. China Securities Index Co., Ltd..
  3. "CSI300 Handbook”. China Securities Index Co., Ltd..
  4. "CSI Indices”. China Securities Index Co., Ltd..
  5. "Diversity the key in China's futures market”. www.chinaview.cn.
  6. CME Eyes China, India in Hunt for Higher-Margin Derivatives. Bloomberg Businessweek.