In the early morning of August 24, FTSE Russell announced the quarterly adjustment results of its flagship index in September 2019. This quarterly adjustment raised the inclusion factor of China’s A-Shares from 5% to 15% as scheduled.
From the recent A-share market trend, the market finally broke through the 2900 point integer mark on August 23 after many shocks. At the same time, the pharmaceutical stocks on the disk have become the most beautiful scenery. From the technical point of view, the rebound resistance of the current market is getting heavier and heavier. If we want to maintain the rebound, we must have a quantity and can continue to cooperate, otherwise the market may have an adjustment trend. At present, the asset allocation advantages of A-Shares are significant, and the financial market continues to expand its opening to the outside world, which also provides an opportunity for the layout of foreign capital.
officially took effect before the opening on September 23
The announcement shows that the FTSE Russell flagship index – FTSE global stock index series (hereinafter referred to as FTSE GEIs) includes 79 new stocks, including 14 large cap stocks, 15 medium cap stocks and 50 small cap stocks. In addition, some A-share targets included in the first batch have been adjusted by market value classification. The above changes will take effect before the opening on September 23.
In this regard, some private placement people believe that from the recent market performance, recently, the three major indexes continue to include A-Shares in their index list, which will take effect one after another. Under the current integer threshold of 2900 points, A-Shares will welcome the living water again. With the continuous influx of foreign capital, it has become a force that can not be ignored. The further inclusion of A-Shares in FTSE Russell index will continue to promote the internationalization of A-share market. The trend of net inflow of foreign capital remains unchanged for a long time, and the pricing power of foreign capital in the A-share market is expected to be further improved in the future. From the technical point of view, the rebound resistance of the current market is getting heavier and heavier. If we want to maintain the rebound, we must have a quantity and can continue to cooperate, otherwise the market may have an adjustment trend. At present, the asset allocation advantage of A-Shares is significant, which also provides an opportunity for foreign capital to layout in China.
welcome three more “running water”
Compared with the first batch of 1090 A-Shares announced in May this year, FTSE Russell did not make a significant adjustment to the list. The increase or decrease of the list mainly involves factors such as new IPO and market value classification adjustment caused by company spin off. In addition to FTSE Russell, MSCI has made quarterly adjustment of the index at the beginning of this month. In the early morning of August 8 Beijing time, MSCI announced the review results of quarterly index in August. The results show that MSCI raised the inclusion factor of China’s large A-Shares from 10% to 15% as scheduled, and the adjustment will take effect after the closing on August 27. According to previous estimates by relevant researchers of MSCI, the inclusion factor of 5% is expected to bring about US $22 billion into the A-share market.
It is worth noting that according to last year’s plan, on September 6, the S & P Dow Jones index will release the adjustment list of Chinese A-Shares included in its index system, and A-Shares will be included at one time with a 25% Inclusion factor. The change will also take effect before the opening on September 23. According to the Na a list previously released by the S & P Dow Jones index, a total of 1241 A-Shares were shortlisted. Some market views expect that S & P Dow Jones will incorporate A-Shares into its index system, which is expected to bring us $10 billion in incremental funds. This means that in the next month or so, the simultaneous increase of holdings of the three major indexes is expected to bring a wave of huge “living water” to a shares, with a total capital of US $36 billion, more than 250 billion yuan.
Since this year, international indexes have announced the expansion of a shares. Recently, according to the data released by the central bank, at the end of June 2019, the market value of domestic shares held by overseas institutions and individuals was RMB 16473.3 billion, and the market value of A-Shares held by public funds was RMB 1997.631 billion at the end of the same month, with a difference of RMB 350.331 billion. At the end of March 2019, the difference between the two was 262.108 billion yuan. According to the data of Galaxy Securities Fund Research Center, if the scale of public equity funds does not increase significantly in 2019, it is expected that the market value of foreign holdings will be closer to that of public funds by the end of the year.
According to the data, as of the closing on August 23, 1392 companies had disclosed the 2019 semi annual report, of which 132 companies appeared QFII.
(Daily Economic News)
