A negative number on the Shanghai Composite Index shows that you are losing money by investing in large-cap index funds.

What does the Shanghai Composite Index mean?

The full name of the Shanghai Stock Exchange Index (SH000001) is the Shanghai Stock Exchange Stock Price Comprehensive Index. It is a stock index compiled by the Shanghai Stock Exchange and was officially released on December 19, 1990.

The samples of this stock index are all stocks listed on the Shanghai Stock Exchange, and newly listed stocks are included in the calculation range of the stock index on the second day of listing.

The weight of this stock index is the total share capital of listed companies.

Since the stocks of listed companies in my country are divided into tradable shares and non-tradable shares, their circulation volume is not consistent with the total share capital. Therefore, stocks with larger total share capital have a greater impact on the stock index. The Shanghai Composite Index often becomes a market maker for large institutions. It is a tool that makes the trend of stock index deviate from the rise and fall of most stocks.

The release of the Shanghai Stock Exchange stock index is almost synchronized with the changes in the stock market. It is an indispensable reference for Chinese investors and securities practitioners to judge the trend of stock price changes.

The index, formerly known as the Shanghai Jing'an Index, was compiled by the Jing'an Securities Business Department of the Trust and Investment Company of the Shanghai Branch of the Industrial and Commercial Bank of China on November 2, 1987.

The Shanghai Composite Index was compiled and published by the Shanghai Stock Exchange on July 15, 1991, with December 19, 1990 as the base period, the base period value as 100, all listed stocks as samples, and the stock issuance volume as

The weights are compiled.

The calculation formula is: today's stock price index = today's total stock market value ÷ total stock market value in the base period × 100; the specific calculation method is based on the closing price of the stock in the base period and calculation day (if there is no transaction on the day, the closing price of the previous day will be used)

Multiply by the number of shares issued respectively, add them up to get the total market value of the base period and calculation day, and divide them to get the stock price index.

When a listed stock is increased in capital or shares are added (deleted), it must be revised accordingly. The calculation formula is adjusted to: Today's stock price index = Today's total stock market value ÷ New benchmark total market value of stocks × 100; where: New benchmark

The total market value of the stock = the total market value of the benchmark stock before the correction × (the total market value of the stock before the correction + the total market value of the stock) ÷ the total market value of the stock before the correction; a little arithmetic conversion will make it more intuitive: the total market value of the new benchmark stock = correction

The total market value of the previous benchmark stock × (1 + the total market value of the stock ÷ the total market value of the stock before revision).