Shanghai Stock Exchange Composite Index (SSEC)

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The Shanghai Stock Exchange (SSE) was founded on Nov. 26th,1990 and in operation on Dec.19th the same year. It is a non-profit-making membership institution directly governed by the China Securities Regulatory Commission(CSRC).

The SSE bases its development on the principle of "legislation, supervision, self-regulation and standardization" to create a transparent, open, safe and efficient marketplace. The SSE endeavors to realize a variety of functions: providing marketplace and facilities for the securities trading; formulating business rules; accepting and arranging listings; organizing and monitoring securities trading; regulating members and listed companies; managing and disseminating market information.

After several years' operation, the SSE has become the most preeminent stock market in Mainland China in terms of number of listed companies, number of shares listed, total market value, tradable market value, securities turnover in value, stock turnover in value and the T-bond turnover in value. December 2004 ended with over 37.87 million investors and 837 listed companies. The total market capitalization of SSE hit RMB 2.6 trillion. In 2004, Capital raised from SSE market surpassed RMB 45.7 billion. A large number of companies from key industries, infrastructure and high-tech sectors have not only raised capital, but also improved their operation mechanism through listing on Shanghai stock market.

Entering the new century，SSE is faced with great opportunities as well as challenges to further boost the market construction and regulation. Combining the cutting-edge hardware facilities，favorable policy conditions in Pudong, exemplary role of Shanghai economy, SSE is fully committed to the goal of State-owned industrial enterprises reform and developing Shanghai into an international financial center with great confidence.


Introduction of SSE Indices

As authoritative statistical indicators widely adopted by domestic and overseas investors in measuring the performance of Chinese security market, SSE Indices are compiled and published by Shanghai Stock Exchange. SSE Indices are price indices including SSE 180 Index, SSE 50 Index, SSE Dividend Index, SSE New Composite Index, SSE Composite Index, Sector Indices, SSE Fund Index, SSE Government Bond Index, and SSE Corporate Bond Index. Among them, the earliest one compiled was SSE Composite Index.

In order to promote the long-term infrastructure construction and the standardization process of the security market, Shanghai Stock Exchange restructured SSE 30 Index and renamed it SSE Constituent Index (SSE 180 Index) in June 2002. As the core of SSE Indices, SSE 180 has made major improvements in methodology on the basis of SSE 30 Index through taking China's current financial market situation into consideration and integrating international experience. Its objective is to select constituents that best represent Shanghai market through scientific and objective method, to establish a benchmark index that will reflect Shanghai market and serve as a performance benchmark and a basis for financial innovation.

SSE Government Bond Index and Corporate Bond Index were launched in 2003. Thus SSE Indices formed a complete system including equity, fund and bond. In early 2004, Shanghai Stock Exchange launched SSE 50 Index in order to reflect the performance of a number of most influential stocks in Shanghai Market. Thus, SSE Composite Index (a whole market index), SSE 180 Index (a performance benchmark index), SSE 50 Index (an index for good quality, large scale stocks) have formed a 3-level pyramid index structure.

SSE Indices reflect overall price changes of stocks listed at Shanghai Sock Exchange from various perspectives. SSE Indices also reflect the level of prosperity and overall price changes of each industry, thus provide investors with benchmark systems for different investment portfolios. With security market's growing importance in national economy, SSE Indices has gradually become a weatherglass for China's economy.

Index Advisory Committee

In order to ensure scientific methodology, transparency of index adjustment and fairness in constituent selection, Shanghai Stock Exchange has established an Index Advisory Committee, which will evaluate and provide advice for index methodology, constituent selection, index adjustment, and index operation standards.

http://www.sse.com.cn/sseportal/en_us/ps/sczn/zstx_home.shtml