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New rules on stock indices released

By Shangguan Zhoudong (Chinadaily.com.cn)
Updated: 2007-06-19 13:39

TheShanghai Stock Exchange(SSE) yesterday released a newly-revised
management regulation on stock indices, in a bid to better manage and
operate indices, China Securities News reports.

The regulation, effective today, applies to a series of SSE indices
including the SSE Composite Index, SSE Fund Index and Government Bond
Index.

The SSE can set additional indices, modify and abolish stock indices,
according to the regulation.

According to the regulation, the SSE is responsible for research, design,
announcement and operation relating to its stock indices, and the SSE can
also authorize other institutions to take charge of these works.

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Institutions and individuals who want to compile stock indices by means
of SSE trading information should be approved by the SSE or institutions
authorized by the SSE and sign an agreement with the exchange.

Institutions and individuals are not allowed to compile stock indices
without the exchange's consent.

The rights and interests relating to SSE indices belong to the SSE, and
any institutions and individuals using SSE indices to develop other
derivatives should get approval from the exchange or authorized
institutions.

The SSE and other authorized institutions will strive to maintain the
timeliness, accuracy and completeness of these stock indices, but they
won't bear any losses due to data blackouts, mistakes or other failures.

The SSE Composite Index, the earliest stock index compiled by the SSE and
an authoritative statistical indicator widely adopted by domestic and
overseas investors to measure the performance of the Chinese securities
market, was launched in 1991.

Currently, the stock exchange has more than 10 indices to track the
performance of equities, bonds and funds.

(For more biz stories, please visit Industry Updates)

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