Understanding the Chinese Stock Market

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Understanding the Chinese Stock MarketCSI 300 IndexSSE_DLY:000300SwissquoteHow can you properly analyze the Chinese stock market from the TradingView platform? This is a legitimate question, as the Chinese stock market can seem complicated from a distance. The Chinese stock market is made up of several exchanges, notably Shanghai, Shenzhen and Hong Kong, and it can seem complicated to know precisely what each one represents and, above all, which index to use to get a clear picture of the underlying trend. In this article, I will explain the 3 best ways to analyze the Chinese stock market with TradingView: the CSI 300 index, which provides a broad view of large-cap Chinese companies listed in Shanghai and Shenzhen, as well as the benchmark index of the Shanghai Stock Exchange and that of the Shenzhen Stock Exchange. The objective is therefore simple: knowing which index to look at depending on the question being asked and avoiding drawing conclusions about the Chinese market based on a single index that represents only part of the Chinese equity universe. The table below presents the best ways to track the underlying trend in Chinese stocks. The TradingView tickers are indicated in the table. 1. The CSI 300: the benchmark index To begin with, the CSI 300 is probably the most interesting index for obtaining a broad view of the Chinese stock market. It includes 300 large companies listed on the Shanghai and Shenzhen stock exchanges. It therefore provides a more representative view of large-cap Chinese stocks than the Shanghai Composite alone. On TradingView, it is an excellent starting point for identifying the underlying trend of the Chinese market and analyzing the main technical support and resistance levels. 2. The Shanghai Composite and the Shenzhen Component Index The Shanghai Composite is one of the historic benchmark indices of the Chinese market. It covers a much broader universe of companies listed in Shanghai, including major state-owned enterprises. Shenzhen is more focused on private companies and, in particular, the technology sector. It is particularly useful for comparing the trend in Shanghai with that of the CSI 300. A divergence between the two indices can also provide valuable information about the breadth of the market move. 3. The Hang Seng: don't forget Hong Kong Finally, to complete the analysis, Hong Kong should also be monitored through the Hang Seng Index. The Hong Kong Stock Exchange occupies a special position because it is home to many major Chinese companies and is also a much more international financial center. The Hang Seng therefore makes it possible to measure the performance of Chinese stocks accessible to international investors, particularly the dynamics of major technology and financial companies. Ultimately, rather than looking for a single Chinese index, it is more relevant to cross-reference these three charts on TradingView. The CSI 300 provides the overall trend, Shanghai/Shenzhen allows investors to track the domestic market, while Hong Kong provides a more international perspective. It is this combination that makes it possible to obtain a much more comprehensive analysis of the trend in Chinese equities. DISCLAIMER: This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only. The presented idea (including market commentary, market data and observations) is not a work product of any research department of Swissquote or its affiliates. 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