There are two main Chinese stock market indices: the Shanghai Composite Index, which trades on the Shanghai Stock Exchange (SSE) and the Hang Seng Index, which trades on the Hong Kong Stock Exchange. Stock indices are designed to measure the overall performance of a stock market as measured by market capitalization (the price of an individual share times the number of public shares outstanding). They include a select group of stocks, chosen by the exchange in this case, as a proxy for the general market. Stock market indices can be used as investments. They can capture the growth available in…