The table below highlights the diverging year-to-date (YTD) performances of some of the more closely followed Chinese stock indices.

Selected China Stock Indices YTD performance

IndexYear-to-date(%) 6/3/2015
China A50-12
CSI 100-6.91
CSI 300-1.56
CSI 50015.22
Shanghai Comp0.2
Shanghai A0.2
Shanghai B1.57
Shenzhen Comp16.72
Shenzhen A16.78
Shenzhen B7.06
China Shen. Small Ent. Co20.82
ChiNext Price32.59
Source: Bloomberg On one extreme, the China A50 index - one of the large cap Chinese stock indices followed more widely, internationally - has sunk almost 12% year to date. On the other extreme, the ChiNext- a favourite index which domestic traders tend to follow- is up more than 30% over the same period. The numbers also highlight the disparity in performance between the Shanghai and Shenzhen bourses. Shenzhen indices including the Shenzhen composite, A and B indices have all pulled away, significantly outperforming their northern counterparts. The final stand out from the numbers suggests the distinction between the performances of larger and smaller caps. Taking the China Securities Index (CSI) series as an example, the outperformance of the CSI 500 versus the CSI 100 is rather glaring. Clearly, blue-chip larger caps have paled in their performance against their smaller-cap counterparts. With sentiment split over the outlook for Chinese equities, the theory of 'Mean Reversion' suggests that prices and returns will eventually move back towards a middle line. Traders should take note that the China A50 took off in afternoon trade yesterday, closing strongly with a 2.5% gain, leaving most of its smaller cousins in its wake.
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