Published On: Sat, Apr 10th, 2010

Have You Ever Heard of The Hu-Shen 300 Index?

If you have then you will know it is the same index as the China Securities Index 300 (CSI300) and the Shanghai & Shenzhen 300 (SHSZ300). It is also the same index that will underlie the China Financial Futures Exchange (CFFEX) index future expected to be launched April 16. That being said I thought I would take this opportunity to allay any confusion (as I certainly had) and offer some further information on what promises to be the regions benchmark index.

‘Hu’ is the colloquial name the Chinese use for Shanghai and Shen, as you’ve probably guessed, is Shenzhen. The index is a capitalization weighted index of 300 representative A-Share stocks comprising of around 60% of China’s total equities market capitalization. A-Shares are securities that trade in renminbi as opposed to B shares which are traded in a foreign currency.

The index was officially launched April 8, 2005 but uses a baseline date of December 31, 2004 with 1,000 as its baseline value.

As of April 8, 2010 the 300 securities comprising the index have 92 names listed on the Shenzhen Stock Exchange (SZSE) and 208 listed in Shanghai.

The top 5 firms in the index by percentage weight are:
China Merchants Bank 3.65%
Bank of Communications 2.77%
China Minsheng Banking Corp 2.64%
Ping An Insurance Group 2.64%
CITIC Securities 2.40%

They are all listed on the Shanghai Stock Exchange (SHSE) and are each in the financial sector. The top 5 firms from the SZSE are:

China Vanke Co 1.68% (Real Estate)
Shenzhen Development Bank 1.30% (Financial)
Wuliangye Yibin Co Ltd 0.98% (Food & Beverage)
Suning Appliance Co Ltd 0.97% (Retail)
ZTE Corporation 0.83% (Technology)

25.34% of the total weighting are SZSE names.

The index is maintained by the China Securities Industry Co. Ltd of which daily values of the component securities can be found. Here is the link for your reference (http://www.csindex.com.cn/sseportal_en/csiportal/zs/jbxx/report.do?code=000300&&subdir=1).

The futures contract information isn’t available yet at the CFFEX website but I have managed to compile the information at the AsiaEtrading.com website HU-SHEN 300 INDEX

I hope this has cleared up any confusion about what the main benchmark and underlying index for China’s financial future really is. Now I wonder which western exchange group will win the T+1 session of the Hu-Shen 300 Index future. Care to wager a guess?

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  1. Barry says:

    Thanks for this explanation. It is very needed.

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