What is the A50 index? A50 index, full name: FTSE China A50 index, also called Xinhua FTSE A50 index before, was compiled by FTSE Russell Company, one of the four largest index companies in the world, on 1999. Official code name: XIN9.
A stands for China A-shares, and 50 stands for the 50 companies with the largest A-shares market value in China. Its total market value accounts for 33% of the total market value of A-shares, which is the internationally recognized index that best represents China A-shares.
Only 33%, but why is it the best representative of China A shares in the international market?
Because it is an index that international investment institutions can directly invest in China stocks overseas, international investors think it can best represent China A-share market.
We also have a 50 index in China, and everyone is familiar with it. The biggest difference between it and A50 index is that SSE 50 is only the top 50 stocks in Shanghai. The 50 stocks of A50 index are the largest in the whole market, including Shenzhen Stock Exchange.
What is A50 index futures? A50 index futures, full name: FTSE China A50 index futures. Is the stock index futures, tracking the FTSE China A50 index mentioned earlier.
In fact, A50 index futures were introduced by Singapore Exchange to attract capital.
Because with the gradual strengthening of China's economic strength and the continuous expansion of the A-share market, A-shares have been sought after and concerned by overseas investors. Therefore, in order to attract investors' funds, Singapore Exchange launched an index futures contract with A50 index as the target in 2006.
The A50 index futures are also the only overseas futures that track the China A-share market.
Stock index futures are standardized futures contracts with stock price index as the subject matter. The two sides agreed that on a specific date in the future, the underlying index can be bought and sold according to the size of the stock price index determined in advance, and the difference will be settled in cash after the expiration. What is the significance of A50 index futures in the market? Before the introduction of A50 index futures, there was no such tool to hedge the risks in the A-share market in the global market, so its existence objectively met the needs of foreign institutional investors to hedge the risks in the A-share market. Its performance can be interpreted as the emotional performance of A shares in the international market.
One of its functions comes from its long trading time.
The trading hours in China are 9:30- 15:00, while the trading hours of A50 index futures are 9:00- 16:30 and 17:00- 5: 15 the next day, which has exceeded 20 hours. It used to start for more than ten hours, then it was close to twenty hours, and now it is twenty hours. If our market is too good, I doubt it will be all-weather without rest. )