The Research Of Function Of Stock Price Index In China

The stock price index is to weigh the overall price level of stock market and yardstick of the changing trend. Its main function is to offer the datum and foundation of financial products innovation for the market. If stock price functions well, it will help the construction, develop and perfecting of stock market. Our country is being in the transition from planned economy to market economy at present. The whole capital market including stock market is still unripe. Its characteristics are the separated stock right and the low degree of concentration market. Under the environment, how to work out the stock index and to make it function well is difficult faced not by manager but also by people who pay attention to our stock market. Under the influence of different market characteristics, this studies, based on the analysis of comparing composite index as datum index with a whiff of indexes of composition as datum, explains the weak points of composition of index of weighting. So, it is so natural as to a conclusion that the composite index takes circulation as right number of the structure to offer the datum for market. In addition, through tracking back to the course of the financial products innovation on the markets of foreign developed countries and analyzing their current situations, this paper studies how to develop, to design and to rich the system of investment index in our country. The purpose of the paper is to accelerate the paces of financial products innovation in our country, and then promote the development and strengthen constantly of the stock market and even the capital marketing in our country.