A one-point drop in the index is 1%. Assume that the index closed at 3,000 points yesterday and fell 1% the next day = 3,000-(3,000*1%) = 2,970 points. If the Shanghai Composite Index is 3,000 points, if the total market capitalization of Shanghai is 50

trillion, assuming the index falls by 1%, then the market value will evaporate (50 trillion * 1%) = 50 billion. In other words, this means that the market value of Shanghai's stocks will directly shrink by 50 billion.

In addition, assuming that the investor has 3,000 yuan, if it falls by 1%, he will lose 30 yuan. Of course, this is just an assumption. The closing quotation of the index is different. Secondly, the index cannot be purchased directly, and can only be purchased from index funds or ETFs.

fund.

In the same way, suppose an investor purchases a Shanghai Composite Index ETF fund worth 100,000 yuan. If the fund falls by one point, the investor will lose 1,000 yuan.

In short, the calculation method for a 1% drop in the index is the same as a 1% drop in the stock. The amount of the drop depends on the size of the market capitalization and the size of the position.