The Shanghai Composite Index tracks all A-shares and B-shares listed on the Shanghai Stock Exchange, China's larger and older exchange. Founded on November 26, 1990 (with trading beginning December 19, 1990), the Shanghai exchange is heavily weighted toward state-owned enterprises (SOEs), financial institutions, and industrial conglomerates.

Why It Matters

The SSE Composite is the most widely cited Chinese equity index internationally, appearing in virtually every global market summary. It captures the performance of China's A-share market, with foreign investor access primarily through the Shanghai-Hong Kong Stock Connect (launched November 2014).

Composition

Dominated by financials (ICBC, Agricultural Bank, Bank of China, China Life), energy (PetroChina, Sinopec), and industrials. Technology and consumer companies are more prevalent on the Shenzhen exchange. The top 10 stocks can represent 15-20% of total index weight.

Historical Events

Government Influence

Unlike developed market indices, the SSE Composite is significantly affected by regulatory decisions. State Council statements about "healthy market development," CSRC enforcement actions, and PBOC liquidity injections can move the index 3-5% in a single session.

Market Impact

SSE Composite movements influence Asian markets broadly, commodity prices (especially industrial metals and crude oil), and global risk appetite toward emerging markets. The index's behavior during Chinese New Year and National Day holidays often creates volatility as positions are adjusted before long breaks.