Service Changqian Changtou Ecosystem Development: Shanghai Composite Index System Adds Three Major Multi-Asset Index Series

◎ Reporter Qidoudou

On April 2, the Shanghai Stock Exchange and CSI Index Co., Ltd. launched three series of indices: the SSE Dividend Benchmark Market-Making Equity-and-Bond Constant Proportion Index Series, the SSE Benchmark Market-Making Equity-and-Bond Constant Proportion Index Series, and the SSE STAR Market Equity-and-Bond Constant Proportion Index Series. In total, there are 15 indices. The above index series are designed to meet investors’ investment needs for low risk and steady returns. By using different allocations between equity and bond assets, they provide standardized, diversified asset allocation tools and further enrich the SSE multi-asset index ecosystem.

Meeting Diverse Needs

A More Robust Index System for Steady Allocation

All three series—the SSE Dividend Benchmark Market-Making Equity-and-Bond Constant Proportion Index Series, the SSE Benchmark Market-Making Equity-and-Bond Constant Proportion Index Series, and the SSE STAR Market Equity-and-Bond Constant Proportion Index Series—adopt a “core broad-based/risk-premium dividend index + high-quality credit bond index” model. They set five tiers of equity-and-bond allocation proportions, with equity shares of 30%, 20%, 15%, 10%, and 5%, respectively. The corresponding bond proportions increase accordingly to form differentiated risk levels and highlight the low-volatility, steady-and-defensive characteristics. Investors can flexibly choose based on their own risk preferences.

Among them, the equity assets in the SSE STAR Market Equity-and-Bond Constant Proportion Index Series are the SSE STAR Market 50 constituents index, while the bond assets are the SSE AAA STAR Market Tech Bond Index. For the SSE Dividend Benchmark Market-Making Equity-and-Bond Constant Proportion and the SSE Benchmark Market-Making Equity-and-Bond Constant Proportion index series, the equity asset indices are the SSE Dividend Index and the SSE 50 Index, respectively. The bond assets for both series are the SSE Benchmark Market-Making Corporate Bond Index. This index series has a clear positioning: the benchmarks are concentrated on the Shanghai market, and the product scale and capacity are large. Through effective smoothing of volatility via equity-and-bond allocation, it matches the steady investment needs of different types of investors.

The launch of these three major multi-asset index series is an important move by the SSE and CSI Index Company to improve the SSE index system and serve the reform of the investment side. It also helps build a multi-asset index matrix that covers diversification and standardization.

The three series form differential and complementary coverage: the SSE Dividend Benchmark Market-Making Equity-and-Bond Constant Proportion series focuses on high dividend yields and high-grade bonds, aligning with long-term value investing; the SSE Benchmark Market-Making Equity-and-Bond Constant Proportion index series focuses on large-cap blue chips and steady bonds, representing core asset allocation on the Shanghai market; the SSE STAR Market Equity-and-Bond Constant Proportion index series emphasizes hard technology and innovation-oriented corporate bond issuance, serving the country’s innovation strategy. Together, they jointly build a multi-asset index matrix covering value, blue chips, and innovation.

Serving the Development of the STAR Market

The First Batch of STAR Market Multi-Asset Indices Officially Launched

The SSE STAR Market Equity-and-Bond Constant Proportion index series being launched is the first batch of multi-asset indices that combine the STAR Market and STAR Market innovation-oriented corporate bonds. This marks that the SSE STAR Market index system and product ecosystem construction has entered a new stage.

It is reported that the index series closely follows the mainline of technological innovation for asset allocation. The equity asset component selects the SSE STAR Market 50 constituents index: covering leading hard-tech companies on the STAR Market. The bond asset component selects the SSE AAA Technology Innovation Corporate Bond Index, focusing on high-credit-quality innovation-themed bond instruments and fully covering high-quality assets in the STAR Market sector. The equity asset weightings of the index series are 5%, 10%, 15%, 20%, and 30%, respectively. Since the base date, the annualized returns of the index series are 5.21%, 5.95%, 6.69%, 7.43%, and 8.93%, respectively; the annualized volatility levels are 1.66%, 3.16%, 4.74%, 6.33%, and 9.51%, respectively. The risk-return payoff is prominent. This series provides investors with a new asset allocation tool to participate in STAR Market growth and pursue steady returns. It will help guide medium- to long-term capital to support technological innovation and serve the high-quality development of the real economy.

At present, the SSE and CSI Index Co., Ltd. have already published 115 multi-asset indices, including 15 SSE series. They have built an SSE multi-asset index system covering types such as constant proportion, risk parity, target risk, and volatility control, among others, providing tools and support for serving residents’ wealth management and guiding medium- to long-term capital to enter the market. Going forward, the SSE and CSI Index Co., Ltd. will continue to optimize the supply of multi-asset indices around national strategic directions and market demand, enrich the supply of steady-type index tools, and provide support for high-quality development of the capital market.

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