Chinese Exchange Apologizes for CSI300 Error... Index Fluctuates Early in Trading Session

[Asia Economy Beijing=Special Correspondent Park Sun-mi] The Shanghai Stock Exchange publicly apologized to investors on the morning of the 20th, stating that errors occurred in the calculation of some indices, including the CSI300 and CSI300 Healthcare.

They explained that the problem arose during a system upgrade process, resulting in incorrect index calculations, and that normal operations were restored from 1 PM.

Due to the error, some indices in the Chinese stock market experienced an abnormal sharp decline that day.

The CSI300 temporarily plunged 2.8% during the morning session, contrary to the actual situation. Additionally, the CSI300 Healthcare Index experienced an abnormal drop of over 17% in the early session. This occurred despite none of the 29 constituent stocks of the CSI300 Healthcare falling more than 2%.

Because of the error in the representative Chinese indices, the prices of ETFs based on the CSI300 around the world also fluctuated sharply in the early session. Bloomberg estimated that there are at least 20 ETFs tracking the CSI300 index. Most of these are listed on stock markets in China, Hong Kong, Taiwan, and Korea.

This index calculation error occurred at a time when the global financial markets were in turmoil due to the spread of COVID-19, and the Chinese stock market was serving as a safe haven, attracting investor funds.

This content was produced with the assistance of AI translation services.