What is Yiwu Index?
Yiwu Index, short for Yiwu China Commodity Index, is China's first index to reflect the trading condition of consumer goods in China, esp. in Yiwu - the largest wholesale market for small daily using articles.
It includes price index, market boom index , and other up to 10 single monitoring and measuring indices.
The price index is published weekly. While boom index and other single indices are published monthly.
There are 100 base points for price index and 1,000 base points for boom index.
These data can also be found on the Ministry of Commerce's website and other major China medias like CCTV.
How This Index Works?
These data are calculated and published by one dedicated team, which is somewhat a part of Ministry of Commerce.
They have a very large merchandiser pool, coving all big and small categories, to feed them with data like: what are the prices today, how many visitors comes to your stall, any orders you received today...
After putting all the needed data together, they use a very complicated system to work on the calculation, filtering, finally publishing.
Why Need This?
These data can reflect price trends, serve as a barometer of market prosperity, dealers' confidence and the market operation situation.
So it can lay a scientific foundation for the decision-making by the government, to solve the dysfunctions of market information and to provide better guidance for millions of manufacturing enterprises and traders.
Also to strengthen China's capability to influence the pricing of consumer goods in the world.
The Ministry of Commerce is hoping this baby would become a recognizable brand like the Dow-Jones Average.
How This Index Was Born?
Minister of Commerce Bo Xilai put forward this idea in Sep. 2005 year during a tour to Yiwu.
The Ministry of Commerce liked this idea and entrusted China small commodity city, Zhejiang Gongshang University and another software company to jointly develop this program.
This index was officially launched in Oct. 2006, on the same day when Yiwu hosted the 12th China Yiwu International Commodity Fair.