The Shenzhen Stock Exchange Launches A New Index For BlockChain Firms

Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic
The Shenzhen Stock Exchange Launches A New Index For BlockChain Firms
  • The Shenzhen Stock Exchange recently launched a new index which serves the purpose of covering blockchain related stocks.
  • This Blockchain 50 index comprises of Shenzhen listed companies involved at all stages of the blockchain sector.

The Shenzhen Stock Exchange is one of the two stock exchanges operating independently in MainLand China along with the Shanghai Stock Exchange. It is popularly known as SSE, situated in Futian district of Shenzhen. Its foundation was formally laid on 1 December 1990 and was opened on 3 July 1991. The CEO of the company is Wang Jianjun, and Chairman is Wu Lijun.

 In an attempt to reflect the performance of the blockchain sector amongst Shenzhen listed stocks along with diversifying index-based investment tools, The SSE had developed the SSE Blockchain 50 Index for launch on 24 December 2019. SSE 50 has been regarded as the blue-chip index of the exchange.

The blue-chip index is a type of index which tracks shares of well known and stable traded companies which are public. Blue-chip stocks constitute companies which bestow investors with consistent returns, making them prudent investments.

The criteria to qualify as a constituent of the SSE 50 Index is that it has to be a constituent of SSE 180 Index. It is highly indicative towards the nature of SSE 50 being a subindex of SSE 180 Index. Adding further to it, SSE 50 is also a subset of SSE Composite Index.

All corporations are adopting the technology which has underlying cryptocurrencies solely based on the fact that it speeds up the business process and along with it provides transparency simultaneously saving billions of dollars.

 Further, it picks the top 50 companies based on average daily market capitalisation for the past six months. 

Capitalisation referred to as the conversion of income or assets into capital.

This newly introduced index adopts free-float market capitalisation weighting. As a result, the sample stocks will be adjusted on the trading day post-haste following the second Friday of June and December each year.

Free float market capitalisation can be easily understood by breaking it into simple terms. The number of shares used for calculations is considered as the number of shares “floating” instead of outstanding. Therefore an index which weighed upon using this manner will be referred to as “float-adjusted”.

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