Which index replicates the performance of the top 300 A-share stocks listed on the Shanghai and Shenzhen stock exchanges?

Which index replicates the performance of the top 300 A-share stocks listed on the Shanghai and Shenzhen stock exchanges?

• A. Shanghai Composite
• B. Hang Seng
• C. CSI 300 Index
• D. SSE Composite

Answer: (C)

This question is about an index designed to reflect the performance of a specific group of stocks. The CSI 300 Index is built to track the 300 largest and most liquid A-share stocks listed on the Shanghai and Shenzhen exchanges, and it uses free-float–adjusted market capitalization weighting so the benchmark reflects investible, representative weightings of those top stocks. Because it targets exactly those 300 large-cap A-shares across both exchanges, it serves as the appropriate benchmark for their combined performance. The other indices cover broader markets: one tracks all stocks listed on the Shanghai Exchange, another tracks the same on the same exchange, and the Hang Seng tracks Hong Kong-listed stocks. So they don’t specifically mirror the performance of the top 300 A-shares across both mainland exchanges.

This question is about an index designed to reflect the performance of a specific group of stocks. The CSI 300 Index is built to track the 300 largest and most liquid A-share stocks listed on the Shanghai and Shenzhen exchanges, and it uses free-float–adjusted market capitalization weighting so the benchmark reflects investible, representative weightings of those top stocks. Because it targets exactly those 300 large-cap A-shares across both exchanges, it serves as the appropriate benchmark for their combined performance.

The other indices cover broader markets: one tracks all stocks listed on the Shanghai Exchange, another tracks the same on the same exchange, and the Hang Seng tracks Hong Kong-listed stocks. So they don’t specifically mirror the performance of the top 300 A-shares across both mainland exchanges.