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Index Methodology

The Zhong Han Commodity Index Key Rules:

Zhong Han Commodity Indices (ZHCI) screen all commodities traded in China Future Market,  Integrate both endogenous and exogenous variables from China futures market, and step by step to build the entire index family based on objective and transparent rule. We also aim to reduce the investors research cost by calculating the indices based on long, short, equal weight, 2X, 3X, and 5X leverage. Each index also has 15 common analytical data as well risk data. The investors can easily find regular commodity market performance and analysis by just entering our index ID. The index family is based on the following principles:  

   *Reflect commodity significance to the economy
   *Track the dynamics in China's futures market
   *Reflect liquidity and investability of commodity
   *Make the diversification of commodity investment
   *Keep continuity of the commodity investment

The Zhong Han Commodity Indices are constructed by the following eight steps:

1. Selection of Commodities and Contracts
2. Calculation of the Weights Related to Commodity Open Interest Value
3. Calculation of the Weights Related to Liquidity
4. The Allocation of the Weights Among Primary Commodities and Derived Commodities
5. Calculation of the Weights Related to Economic Significance
6. Determination of Final Commodity Weights
7. Contract Rolling and Index Continuity
8. Calculation of Commodity Index Values and Returns

 For Zhong Han Absolute Return Indices, Please contact for the details of index methodology.


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