On February 18, FTSE Russell, an international index compilation company, announced the quarterly review results of FTSE global stock index series. The adjustment will take effect after the closing on March 18. The adjustment of this index tends to attract the inflow of passive index funds in the short term, so the list of newly included enterprises has attracted much market attention.
In this adjustment, the FTSE global stock index series newly included a number of semiconductor A shares such as China Resources Microelectronics Limited(688396) , Rockchip Electronics Co.Ltd(603893) , Hangzhou Lion Electronics Co.Ltd(605358) . In addition, the newly included A-Shares are also distributed in energy, transportation, medical and other sectors. The big white horse China Life Insurance Company Limited(601628) , with a market value of more than 800 billion, has become the only A-share target excluded from the large cap stock category.
a total of 102 new A shares
The announcement shows that the FTSE global stock index series includes 102 A shares, including 26 large cap stocks, 4 medium cap stocks and 72 small cap stocks; Only one A-share is excluded from the category of large cap stocks, and the subject matter excluded from the category of medium cap stocks and small cap stocks does not involve A-share.
Specifically, the 26 new large cap stocks include Amlogic (Shanghai) Co.Ltd(688099) , China Resources Microelectronics Limited(688396) , Joyware Electronics Co.Ltd(300270) , Rockchip Electronics Co.Ltd(603893) , Hangzhou Lion Electronics Co.Ltd(605358) and other electronic semiconductor industry stocks; Individual stocks of energy storage industry such as China Energy Engineering Corporation Limited(601868) , China Three Gorges Renewables (Group) Co.Ltd(600905) , Trina Solar Co.Ltd(688599) ; It also includes Anhui Yingjia Distillery Co.Ltd(603198) , Eastroc Beverage (Group) Co.Ltd(605499) two stocks in the food and beverage industry.
The newly incorporated stocks of mid cap stocks include: China Southern Power Grid Energy Efficiency&Clean Energy Co.Ltd(003035) , Guangzhou Pearl River Piano Group Co.Ltd(002678) , Sansure Biotech Inc(688289) , Western Mining Co.Ltd(601168) 4 A-share targets. Among the 72 A shares newly added in the small cap share capital, there are many energy shares, including Chongqing Fuling Electric Power Industrial Co.Ltd(600452) , Chongqing Three Gorges Water Conservancy And Electric Power Co.Ltd(600116) , Foshan Nationstar Optoelectronics Co.Ltd(002449) , Guangzhou Zhiguang Electric Co.Ltd(002169) , Chn Energy Changyuan Electric Power Co.Ltd(000966) , Hunan Zhongke Electric Co.Ltd(300035) .
800 billion white horses were “kicked”
It is worth noting that in this quarterly adjustment, China Life Insurance Company Limited(601628) was excluded by the FTSE global stock index series. The adjustment reason shows that China Life Insurance Company Limited(601628) does not meet the minimum free circulation requirements as a component of the FTSE global stock index, so it is excluded.
This provision appears in article 6.3 of the FTSE global stock series index standard, that is, the review requirements on the liquidity of constituent stocks. According to the regulations, FTSE Russell will measure the liquidity of constituent stocks according to the median of the daily trading volume of stocks in March and September of each year.
According to the past situation, this may be due to the fact that the proportion of foreign shares has reached the upper limit. Last May, three A shares, including Gree Electric Appliances Inc.Of Zhuhai(000651) , were also excluded from the FTSE global stock index series on the grounds that they did not pass the review of free circulation adjustment.
According to the website of Shenzhen Stock Exchange, at that time, the proportion of foreign ownership of Gree Electric Appliances Inc.Of Zhuhai(000651) and other three stocks exceeded the warning line of 27%, and approached the 28% suspension buying point several times. This means that the three stocks were eliminated because the proportion of foreign shares reached the upper limit and there was insufficient space for foreign investors to buy.
According to the current regulations of the exchange, when the proportion of foreign shares exceeds 24%, the latest foreign shares of the stock will be announced on the next trading day; After more than 28%, Shanghai and Shenzhen Stock connect suspended buying and could only sell; More than 30%, all foreign investment buying channels are closed and can only be sold.
However, in the past year, China Life Insurance Company Limited(601628) has not appeared in the list of foreign shares held by Shanghai Stock Exchange, which means that the proportion of foreign shares held by China Life Insurance Company Limited(601628) A shares has not reached 24%.
It is understood that the index company will observe the excluded target for 12 months. If the conditions are met again after 12 months, it may be included again.
foreign investors are optimistic about the trend of A-Shares
Since the beginning of the year of the tiger, the trend of A-Shares has been relatively volatile, but the trend of foreign investors optimistic about A-Shares continues. Liu Hui, senior fund manager of Jingshun, expects investors’ sentiment towards the A-share market to gradually improve. Promising industries include electric vehicle supply chain, electronic products and medical care. Liu Hui believes that the liquidity of the A-share market may remain abundant in 2022, and the structural transformation of market demand from financial products to public funds will continue.
From the perspective of specific industries, Liu Hui said that the investment in the electric vehicle supply chain is shifting from the whole industry to strictly selecting individual companies. Unlike the industry wide rise seen in 2021, this year’s opportunities will be structural. Liu Hui is optimistic about high barriers to entry and enterprises that can take advantage of new technologies such as car intelligence and automatic driving. It is expected that smart cars and new technology applications will become the main investment theme in 2022.
Meanwhile, Liu Hui is optimistic about the fundamental prospects of the electronics industry in 2022 and expects the mobile phone supply chain to stabilize. Foldable smart phones will become a new catalyst. Other growth drivers of electronic products include automotive related electronic products, virtual reality (VR) / augmented reality (AR), smart wearable devices and the Internet of things (IOT).
In addition, Liu Hui believes that China’s health care is a long-term investment theme. China’s aging population, rising income levels and health care innovation are the long-term driving forces of the health care industry. Liu Hui believes that the risk return rate of China’s healthcare industry will become more attractive in 2022. After the valuation correction in 2021, the P / E ratio of the healthcare industry has fallen below the five-year average.
