--- title: "SSE 180: Methodology" description: "SSE 180 is maintained by Shanghai/Shenzhen Stock Exchange and covers Chinese large-cap equity benchmark. How the index selects and weights its constituents." canonical: https://www.getswoopr.com/stocks/indexes/sse-180/ source: "Swoopr Investment: https://www.getswoopr.com" --- # SSE 180: What It Measures and How It Is Built ## Direct Answer > The SSE 180 is a rule-based measurement of Chinese large-cap equity benchmark, maintained by Shanghai/Shenzhen Stock Exchange. Like every index it owns nothing: it is a number produced by applying a published weighting formula to a selected list of companies, revised on a schedule the provider sets. ## What this index covers The SSE 180 covers Chinese large-cap equity benchmark, within the China market. Shanghai/Shenzhen Stock Exchange defines which securities are eligible, how they are selected from that pool, and how much each one contributes to the published number. The name states a target of 180 companies. A target is not a guarantee of the exact count on any given day: corporate actions, dual share classes and pending additions all move the real number around it. ## How constituents are weighted Free float adjusted market capitalisation weighted with a weight factor between 0 and 1 set at each rebalancing. The factor caps any constituent at 10%, caps the top five combined at 40%, and sets each sector's weight to its share of free float market capitalisation in the universe. The weighting method is the single biggest driver of how an index behaves. Two indexes covering the same market can diverge for years purely because they weight differently, which is why comparing index levels without knowing the method tells you very little. ## What qualifies for inclusion The universe is non-ST and non-*ST stocks and red-chip CDRs listed on the Shanghai Stock Exchange. Securities in the top 90% by average daily trading value over the past year are eligible, those with an ESG rating of C or below are removed, and the top 180 by average daily total market capitalisation are selected. Eligibility rules are the part of an index most readers never look at and the part that decides what it can possibly measure. A screen that excludes a whole sector, or admits only one listing venue, shapes the result far more than any day of trading does. ## How long a listing must exist first STAR Market securities must have been listed for more than one year. Other securities need more than one quarter, unless their average daily total market value since listing ranks in the top 18. A seasoning rule is why a large new listing does not appear in an index the week it starts trading. It is a deliberate lag, and it means an index can under-represent a fast-growing part of the market for months at a time. ## When the membership is revised Adjusted and rebalanced semi-annually, effective the next trading day after the second Friday of June and December. The number of constituents changed at each review will not exceed 10%. Reconstitution is the one date an index changes shape by design rather than by price. Funds tracking it have to trade toward the new membership, which is why the schedule matters to anyone holding the tracker rather than only to the provider. ## The rule that surprises people The weight factor forces sector weights to match each sector's share of the universe, so the index is sector balanced by rule rather than purely cap weighted, and the single stock and top five caps apply on top of that. ## References - [Shanghai/Shenzhen Stock Exchange: China Securities Index Co., Methodology of SSE 180 Index](https://oss-ch.csindex.com.cn/static/html/csindex/public/uploads/indices/detail/files/en/000010_Index_Methodology_en.pdf), as published 2024. Every rule described on this page is taken from this document. ## Current SSE 180 constituents Shanghai/Shenzhen Stock Exchange publishes and licenses the SSE 180 constituent list. Swoopr does not republish it here. The provider's own page is the authoritative source for current membership and weights. [Shanghai/Shenzhen Stock Exchange: official SSE 180 page](https://english.sse.com.cn/markets/indices/overview/) ## Related reading - [All stock market indexes](https://www.getswoopr.com/stocks/indexes/): how indexes are built, weighted and revised. - [Emerging Markets indexes](https://www.getswoopr.com/stocks/indexes/emerging-markets/): others covering the same region. - [Index concentration](https://www.getswoopr.com/technical-analysis/market-concentration/index-concentration/): measuring how much of an index sits in its largest holdings. - [Index rebalancing and inclusion effects](https://www.getswoopr.com/stocks/corporate-actions-catalysts/index-rebalancing-and-inclusion-effects/): what happens to a stock when index membership changes. ## Frequently Asked Questions ### Who maintains the SSE 180? Shanghai/Shenzhen Stock Exchange maintains the SSE 180 and publishes the methodology document that defines its eligibility and weighting rules. ### What does the SSE 180 measure? It measures Chinese large-cap equity benchmark. The index is a calculated number applying a weighting formula to a selected list of companies, and it holds nothing itself. ### Where can I see the current SSE 180 constituents? Shanghai/Shenzhen Stock Exchange publishes the current constituent list. Swoopr does not republish it, because index providers license constituent data and Swoopr holds no such licence. ## About the author The [Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/) writes Swoopr Investment's educational library, covering market structure, analysis methods and the mechanics behind the numbers investors read every day. Our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/) set out how this content is produced, reviewed and fixed when it is wrong.