Which Can Better Describe Chinese Stock Market between Shanghai Composite Index and Constituent Stock Index

摘要

To study which can better describe Chinese stock market between Shanghai Composite Index and Constituent Stock Index, the paper selected the daily closing price of Shanghai Composite Index, Hushen 300and SSE 180, and compared the long-term memory of the return series through V/S analysis, and the results showed that:(l) these three indexes have long-term memory;(2)comparing with Shanghai Composite Index, constituent stock index can better describe Chinese stock market. Therefore, in order to avoid the wrong market guide caused by the distortion of Shanghai Composite Index,-China should gradually promote the use of constituent stock index, such as Hushen 300 and SSE 180.