A Deep Dive Into the Shanghai Composite Index

Understanding the SSE Composite Index

The Shanghai Stock Exchange (SSE) Composite Index, also known as the SSE Composite, is a prominent stock market index that reflects the overall performance of stocks listed on the Shanghai Stock Exchange. It tracks the weighted average stock prices of all A-shares and B-shares traded on the exchange.

Components and Methodology

The SSE Composite comprises all A-shares and B-shares issued by companies listed on the Shanghai Stock Exchange.

• **A-shares** are accessible only to domestic Chinese investors.
• **B-shares** are designated for foreign investors and can be traded in foreign currencies.

The index is calculated using a capitalization-weighted methodology, where the market value of each company's shares influences its impact on the index.