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The Shanghai gauge dropped 1.1 percent to 2,651.79 at the close, below its January 2016 closing low. Back then, officials had just introduced and then hastily scrapped a disastrous circuit-breaker program as they grappled with one of the market’s worst-ever routs.

I think "The Shanghai gauge" is referring to "the Shanghai Composite Index gauge". (Assume my understanding is correct) Is that abbreviation common in the language of stock market?

The full source.

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Bloomberg:

"China’s sinking stock market reached an unwelcome milestone, with the Shanghai Composite Index closing at the lowest level since 2014, erasing the last traces of its recovery from a boom that turned into a $5 trillion bust.

The Shanghai gauge dropped 1.1 percent to 2,651.79, below its January 2016 bottom. Back then, officials had just introduced and then hastily scrapped a disastrous circuit-breaker program as they grappled with one of the market’s worst-ever routs."

Bloomberg

They use gauge to avoid repeating the term index or. Acceptable terminology is: Shanghai Composite Index, the Shanghai index or the Shanghai gauge. A gauge means something that measures something. But you would not append gauge to: the Shanghai Composite Index.

Here is another example used for the New York Stock Exchange (another gauge):

TITLE in USA Today: Dow's biggest 2-day drop since 2016 puts investors on edge as stock gauge briefly falls 400 points

gauge

Any measure of marketplace activity where shares or other financial instruments are traded on an exchange, including commodities, can be termed a gauge, meaning measure of the average daily volume of trading (purchase and sale of financial instruments).

  • So, gauge and index are interchangeable in this sense? – dan Sep 17 '18 at 13:47
  • @dan Yes, they are. – Lambie Sep 17 '18 at 14:15

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