China News Agency, Beijing, June 19 (Reporter Chen Kangliang) As a representative stock index of China's A shares, the Shanghai Composite Index (that is, the Shanghai Composite Index) ushered in a big change on the 19th. The Shanghai Stock Exchange (Shanghai Stock Exchange) issued an announcement on the same day saying that the Shanghai Stock Exchange and China Securities Index Co., Ltd. decided to revise the plan for compiling the Shanghai Composite Index from July 22, 2020.

Data map: Investors view market information in the securities business department. China News Service reporter Hou Yushe

  This is the first major overhaul in the past 30 years since the Shanghai Composite Index was released. The Shanghai Composite Index was released in 1991 and is the first stock index in the A-share market. The core compilation method is still in use today.

  According to reports, this revision mainly includes three aspects: that is, to remove stocks that have been subject to risk warnings, to delay the time for the calculation of new stocks, and to include the Science and Technology Board Securities in the sample space of the Shanghai Composite Index.

  In response to this "overhaul", the relevant person in charge of the Shanghai Stock Exchange said that in recent years, there have been many voices in the community on the revision of the Shanghai Stock Exchange Composite Index compilation plan, and opinions such as "the distortion of the Shanghai Composite Index" and "the failure to fully reflect changes in the market structure" have frequently appeared. In order to fully respond to market calls, to further improve the scientificity and rationality of index compilation, and to more accurately characterize the overall performance of the Shanghai market, the Shanghai Stock Exchange and China Securities Index Co., Ltd. have been researching and carefully starting the revision work of the Shanghai Composite Index compilation plan.

  Li Zhan, chief economist of Zhongshan Securities, once put forward opinions such as "the distortion of the Shanghai Composite Index". Li Zhan said that as the first index compiled by the Chinese stock market, the Shanghai Composite Index has a greater influence among investors, especially retail investors, but the Shanghai Composite Index has not been rising for ten years and is often criticized by investors. The SSE Composite Index has not risen for ten years, although it is related to the current epidemic and other factors. The current stock index is at a low level. However, compared with other major A-share indexes, the SSE Composite Index has significantly lower growth over the same period, indicating that the rules for the compilation of the SSE Composite Index are not reasonable. The index has distortion problems.

  Li Xunlei, chief economist of Zhongtai Securities, holds a similar view. According to Li Xunlei, China's economy has achieved high growth for as long as 30 to 40 years. In 2000, China's GDP (gross domestic product) exceeded 10 trillion yuan (RMB, the same below) and reached 99 trillion yuan in 2019 . The Shanghai Composite Index has reached 2000 points in 2000, and why it has not exceeded 3000 points in 2020. The contrast between 10 times GDP and 50% stock index increase is not small.

  Li Xunlei believes that there is a lack of linkage between the Shanghai Composite Index and China's nominal GDP for four main reasons: first, the proportion of traditional industries in the structure of listed companies is significantly higher than that in GDP; second, poor performance The stocks have not been fully cleared and delisted, which has lowered the overall stock index point; third, there is an unreasonable time for the new stocks to be included in the index; fourth, the issue of index weighting.

  This revision focused on responding to market concerns. For example, the new regulations require that newly listed securities whose average daily market value ranks among the top 10 in the Shanghai stock market are included in the index three months after listing, and other newly listed securities are included in the index one year after listing.

  The above revision draws on international experience. Generally speaking, new stocks need to go through a full market pricing game before they are eligible to be included in the index. STOXX European Whole Market Index. At the same time, in order to maintain the market representativeness of the index, some representative indexes will set up a mechanism for quickly accounting for new stocks with large market capitalization. Access mechanism.

  Regarding the practice of excluding stocks subject to risk warnings, the relevant person in charge of the Shanghai Stock Exchange stated that the stocks subject to risk warnings have higher risks and greater fundamental uncertainties, and the investment value is affected, making it difficult to represent the mainstream situation of listed companies. The removal of stocks subject to risk warnings will help the Shanghai Composite Index to better play its investment function and better reflect the overall performance of Shanghai-listed companies.

  In response to the practice of incorporating S&T board securities, the above-mentioned person in charge said that S&T board has become an important part of the Shanghai stock market. The listed companies of the Science and Technology Board cover many technologically innovative enterprises. The inclusion of the Science and Technology Board Securities will not only increase the market representativeness of the Shanghai Composite Index, but will also further increase the proportion of listed companies in emerging industries in the Shanghai Composite Index. The Shanghai Composite Index better reflects changes in the structure of the Shanghai stock market.

  As for whether some investors are concerned about whether the revision of the Shanghai Composite Index will affect the continuity of the index, the person in charge said that the implementation of this revision of the Shanghai Composite Index compilation, drawing on the practice of international representative index compilation and adjustment, is intended to adopt a seamless connection It is carried out in the same way, that is, the point on the effective date of the change in the index compilation plan is seamlessly connected with the point on the previous trading day. The real-time point on the effective date is calculated based on the closing point on the previous trading day and the rise and fall of the sample stock on the same day. Therefore, the implementation of the compilation and revision of the Shanghai Composite Index will not affect the continuity of the Shanghai Composite Index and will not affect investors' observation of market conditions. (Finish)