CSI 300 Index
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[edit]
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[edit]
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[edit]
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[edit]
References[edit]
- ↑ Shanghai Shenzhen CSI 300 Index profile. Bloomberg.
- ↑ "CSI 300 Index Introduction”. China Securities Index Co., Ltd..
- ↑ "CSI300 Handbook”. China Securities Index Co., Ltd..
- ↑ "CSI Indices”. China Securities Index Co., Ltd..
- ↑ "Diversity the key in China's futures market”. www.chinaview.cn.
- ↑ CME Eyes China, India in Hunt for Higher-Margin Derivatives. Bloomberg Businessweek.