Stock Index Empirical Research

The share price indices are used to indicating the average price and variation of several stocks, which can be the guideline of the market. It is shorted for index of stock. As different as the numbers and the types are in the stock market, the index of stock can be classified by composite index, ingredient index and classified index. Share price indices have heen compiled to give investors a better understanding of general market conditions. The author made a thorough analysis and evaluations on the Composite Index, the Index-30 and index-180 of the shanghai Stock Exchange.It has been teen years since Chinese stock market constructed. There are many kinds of indices, but is not an index unity. The most importance is the liquidity of the stocks. The stocks held by government or by corporations can not be circulating and trading, that makes more problems to the market, such as the weight of the index calculations.We quote the main indices of the world, and compare their specialty of formation. Considering the evolution of Chinese index of stock, we try to emphasize the indices prevailing in China market, especially in shanghai stock market. It is of the point that the relationship, cross-referring, and continuity among the targets. For the most things, we try to form a concept that constructs an index unity system. It contains principle of the calculation, weight designation, sample stocks selection and stocks held by government reduction ex. By the means above, it benefits to the index of stock system and progress the index derived producing.