Core Viewpoint - The Shanghai Stock Exchange and China Securities Index Co., Ltd. announced the launch of the Shanghai 580 Index on June 16, aimed at providing a comprehensive perspective on the performance of small and medium-sized listed companies in the Shanghai market [1][4][21]. Group 1: Index Overview - The Shanghai 580 Index will consist of 580 securities selected from the Shanghai market, focusing on smaller market capitalization and higher liquidity [6][20]. - The new index will complement existing indices such as the Shanghai 50, Shanghai 180, and Shanghai 380, forming a comprehensive index series that reflects the overall performance of different market capitalization companies [4][24]. Group 2: Market Context - Over 60% of listed companies in the Shanghai market have a market capitalization below 10 billion yuan, indicating a significant demand for an index that represents small-cap companies [22]. - The Shanghai 380 Index, which has been in place for over a decade, has shown limitations in representing small-cap companies, prompting the need for the new Shanghai 580 Index [22][23]. Group 3: Index Composition and Characteristics - Approximately 30% to 40% of the sample weight in the Shanghai 580 Index will be allocated to sectors such as the Science and Technology Innovation Board, specialized and innovative enterprises, private economy, and emerging industries, highlighting its innovative small-cap characteristics [20]. - The Shanghai 380 Index has been optimized to improve its representativeness, with a sample market capitalization coverage increase of 14.7%, up by about 1 percentage point from before the optimization [22]. Group 4: Broader Index System - The establishment of the Shanghai 580 Index contributes to a flagship broad-based index system that includes the Shanghai 50, 180, 380, and 580 indices, covering 50% of the number of securities and nearly 90% of the market capitalization in the Shanghai market [25]. - The index system is designed to facilitate long-term investment strategies, providing a basic allocation tool for investors in the A-share market [26].