1. Market differences between Shanghai and Shenzhen:
(1) There are more blue chips in Shanghai Stock Exchange, compared with Bank of China, Industrial and Commercial Bank of China and China Life Insurance. At the same time, the institutional SSE has more funds and active trading, so it pays more attention to the Shanghai Composite Index, which often represents the general trend.
⑵ The positioning of Shanghai Stock Exchange and Shenzhen Stock Exchange is different. Heavyweights, big blue chips, Chinese prefix stocks and other pillar enterprises of the national economy are all listed on the Shanghai Stock Exchange, so the Shanghai Stock Exchange has a large market value and a high turnover, which is the mainstream index. Relatively speaking, Shenzhen Stock Exchange is a small and medium-sized enterprise with a smaller scale.
⑶ Before 2000, the Shanghai and Shenzhen stock exchanges were almost the same. In the three or four years after 2000, Shenzhen stopped issuing new shares and was left behind by Shanghai. In 2004, Shenzhen began to issue SME shares, which formed differentiated competition with the Shanghai main board market.
Second, the Shanghai Composite Index
The Shanghai Composite Index 199 1 was released in July, which is a comprehensive index that includes all the stocks in Shanghai Stock Exchange and reflects the overall situation of stock price changes in Shanghai Stock Exchange. The theoretical algorithm of Shanghai Stock Exchange Index is: first, calculate the total market value of each stock on that day (the price multiplied by the total share capital), and add it up, which is the total market value of Shanghai Stock Exchange on that day. Divide by 1990 19 2 the total market value of Shanghai stock market in February, and then multiply by the amplification factor 100 to get the Shanghai Stock Exchange Index.
① The Shanghai Composite Index takes the total share capital as the weight to participate in the calculation, but in the stock market, only the tradable shares can participate in the transaction, which is a major shortcoming in its algorithm. Later, when compiling indexes such as SSE 50 and CSI 300, they all noticed this problem and turned to tradable shares as weights.
② In the market software, in addition to displaying the time-sharing chart of the Shanghai Composite Index, many softwares will also display the leading index of the Shanghai Composite Index, that is, the result obtained after removing the total equity weight when calculating the Shanghai Composite Index. Small-cap stocks are relatively active at this time. When rising, the index often runs above the Shanghai Composite Index, and when falling, it is generally below the Shanghai Composite Index, so it is called the leading index. The Shenzhen Composite Index of Shenzhen Stock Exchange also counts all the stocks of Shenzhen Stock Exchange. Investors who used to buy and sell Shenzhen stocks attached great importance to the Shenzhen Composite Index. However, after 1995, the Shenzhen Stock Exchange drew lessons from the compilation methods of Dow Jones Industrial Average and Hang Seng Index in Hong Kong, and selected 40 stocks to compile the Shenzhen Component Index as the weather vane when the Shenzhen Stock Exchange opened. Shenzhen Component Index was released on February 20th, 1995. The benchmark date is1July 20th, 994, and the benchmark index is set to 1000. The algorithm is similar to the index of Shanghai Stock Exchange, but the weight is changed from total share capital to tradable shares.
③ From 2065438 to May 20, 2005, in order to better reflect the structural characteristics of Shenzhen market and meet the needs of further market development, Shenzhen Stock Exchange expanded the number of sample shares of Shenzhen Stock Exchange from 40 to 500 to fully reflect the operating characteristics of Shenzhen market.
(4) However, the practice of attaching importance to the investment of constituent stocks in American and Hongkong stock markets does not work in China. The Shanghai and Shenzhen stock markets are still dominated by plate rotation, so investors are generally not optimistic about the Shenzhen Composite Index. Although the Shenzhen Composite Index can still be found, it is still not as prominent as the Shenzhen Composite Index in the market software, and everyone will slowly forget it.