What Is a Total Market Index?

A market index refers to an index reference number prepared by various service agencies to indicate changes in a certain market.

Market index

For China, the creation and release of market indexes is a sign of the continuous improvement of China's market system. It is also China's reform and opening up and economic development as well as

First of all, the definition should be clear, whether it is a comprehensive price index or a general industry index. Second, we must pay attention to the scientific nature of the method. The scientific nature of the method depends on the authority of the institution and who has the qualifications to make the index. This depends on the accumulation of academics. The forward-looking and scientific nature of government decisions depends on the grasp of the industry. It also depends on the matching and correlation of the index itself. The choice of nodes is also important. Don't do data for data. Data continuity, which is the most important for indexing, should be tracked for a long time. The far-reaching impact is again. Once an index is done, it will be meaningless if it does not have a profound impact on macro decisions and micro operations. To interact with other markets, it must have influence on other markets. For index weight selection, we must choose products with large trading volume, large trading volume and large price fluctuations. If the price does not fluctuate, the price index is meaningless. Finally, we must consider the adequacy of market competition and the separation of production and sales. If the market is regional, the index has no influence. In general, after the index is made, it must be flexible, and the changes in the index must have sufficient economic meaning in it.