1. Hello brothers and sisters, tomorrow the A-share base will open! Everyone must have seen the news recently, starting next Monday (July 29), there will be no more 3,000 points to defend the battle! A "strengthened" version of the SSE Composite Total Return Index with more emphasis on dividends is coming, and the index will go directly up to 3200 points? Is this a change in the water meter? What exactly is happening, and how does it affect us? Don't worry, Dalong will tell you right away!
2. Don't worry, this time is not to change the Shanghai Composite Index, but a more emphasis on dividends of the "enhanced" Shanghai Composite Index will announce the real-time market in the intraday, according to the arrangement two weeks ago, the Shanghai Stock Exchange and China Securities Index Co., Ltd. decided to officially release the real-time market of the Shanghai Composite Total Return Index from Monday, and at the same time adjust the index code and abbreviation to "000888" and "Shanghai Income" respectively.
The index is not new, but already exists, with a base date of July 21, 2020 at 3320.89 points. However, this does not mean that the "Shanghai Composite Earnings" will be displayed at more than 3,300 points at the opening of trading on Monday. Open the market software to retrieve 000888, you will see that the index has a corresponding K-line every trading day since July 22, 2020, and the trend has also fluctuated, with the highest reaching 3808 points and the lowest touching 2863 points.
As of Friday (July 26), its closing point was 3199.76, a weekly decline of 2.94%, slightly better than the Shanghai Composite Index's performance this week (-3.07%). This also means that on Monday morning, the index should open around 3,200 points.
2. What is the difference between the SSE Index and the SSE Composite Total Return Index?
Shanghai:
By definition, "SSE Returns" is the full return index of the "SSE Index". As a "price index", the Shanghai Composite Index only considers the rise and fall of stock prices when calculating the yield, reflecting the overall stock price performance of listed companies in the Shanghai Stock Exchange and measuring the rise and fall of all listed companies in the market.
SSE Yield Index:
The SSE Composite Total Return Index is an index specially compiled to facilitate investors to observe the overall income of the Shanghai securities market! In the future, through this index, you can see how much money you make on average! And we also know that some listed companies will have dividends, if the cash dividend income is reinvested in the original portfolio, you will get a more comprehensive "full return". In addition to reflecting the performance of stock prices, the Total Return Index also includes the income generated by the reinvestment of stock dividends in the calculation. The announcement of real-time market conditions, on the one hand, allows investors to understand the impact of dividend income at a glance, and on the other hand, it also continues to encourage listed companies to increase dividends.
The new index code is 000888, which can be said to be very good. He took 3320.89 points from the base point of the Shanghai Composite Index since July 21, 2020, which also means that the next time the market opens, we will directly stand on 3300 points, directly eliminating the 3000-year defense war from the physical level, so between change and reform, we chose to adjust the table.
3. So is there really no 3000-year defense mission?
Of course not, these are two different indexes, the Shanghai Composite Index actually still exists, it is a new Shanghai Composite Income Index, so it is not the table of the Shanghai Composite Index, and A shares will not give you a penny more. However, Dalong feels that this is still for his own face, and it actually does not play a positive role in the current market of A-shares, just covering his ears and stealing the bell, and deceiving himself.
In a word, the Shanghai Composite Index remains unchanged in this reform. The Shanghai Composite Index is the code of 000001, and the code of the Shanghai Composite Index Income Index is 000888, We see what time the index will open tomorrow, and now the software has about the opening at about 3199 points. These two indices are just a matter of display, and the Shanghai Composite Index will remain unchanged tomorrow, still around 2900 points!
As long as there is no capital to enter the market, the market will continue to swing, take your time, and look forward to the early rise of A shares, come on!
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