Today (March 18), the three indexes rose sharply in the afternoon, but near the closing, the Shenzhen Composite Index and the gem index fell slightly. Among individual stocks, many heavyweights led by Contemporary Amperex Technology Co.Limited(300750) , Bank Of Ningbo Co.Ltd(002142) , Postal Savings Bank Of China Co.Ltd(601658) , Industrial And Commercial Bank Of China Limited(601398) , China Merchants Bank Co.Ltd(600036) , Citic Securities Company Limited(600030) , etc. plunged in the late call auction, while China Merchants Bank Co.Ltd(600036) , Citic Securities Company Limited(600030) . On the news side, the February quarterly adjustment of FTSE Russell index officially took effect after the closing of today (March 18) (before the opening of March 21), and the inflow of northbound funds also accelerated late today.
FTSE Russell index welcomes adjustment, and northward capital accelerates net inflow
On February 18, Beijing time, FTSE Russell, an international index compilation company, announced the quarterly review results of its flagship index in February 2022. The announcement shows that its flagship index FTSE global stock index series includes 102 Chinese A shares this time, including 26 large cap a shares, 4 medium cap A-Shares and 72 small cap a shares. In addition, some previously included A-share targets have been classified and adjusted due to changes in market value. The above changes will take effect after the closing on March 18 (before the opening on March 21).
In terms of the performance of individual stocks, only the 26 newly included large cap stocks were counted. Today, the overall rise was more or less, among which, Shenzhen Dynanonic Co.Ltd(300769) , China Resources Microelectronics Limited(688396) , Daqin Railway Co.Ltd(601006) , China Energy Engineering Corporation Limited(601868) and other stocks rose briefly at the end of the call auction stage. From historical experience, the adjustment of FTSE Russell index involves the transfer in and transfer out of relevant target companies. Generally speaking, in order to track the passive funds of the index and reduce the tracking error as much as possible, positions are usually adjusted on the last day. The transaction of individual stocks with large weight changes is often “abnormally” enlarged at the end of the trading, and some institutions often choose to rush to raise at this time.
However, individual stocks newly included in the index often do not necessarily rise. Some institutional analysts believe that on the official implementation date of index adjustment, although passive funds “must” adjust their positions according to the change of weight, the actual change of stock price may not be consistent with the direction of weight adjustment, but will be more affected by the comparison between early arbitrage funds and passive funds. Therefore, There are many cases where the share price of newly incorporated or weighted stocks fell on the implementation date of adjustment.
Affected by this, the northbound capital index will also change at the end of the trading. According to the choice data, at the end of the trading today, the northbound capital appeared to rush to raise funds. The net inflow of funds once reached 39 billion yuan (14:59), and the net purchase soared from 5.956 billion yuan (14:59) to 8.457 billion yuan (15:00). Judging from the transaction of the whole day, China Merchants Bank Co.Ltd(600036) , Citic Securities Company Limited(600030) , Longi Green Energy Technology Co.Ltd(601012) received net purchases of 1.202 billion yuan, 583 million yuan and 527 million yuan respectively Contemporary Amperex Technology Co.Limited(300750) net sales ranked first, with an amount of 778 million yuan.
Note: net inflow data of northbound funds today (closing on March 18)
Note: net buying data of northbound funds today (closing on March 18)
northbound funds have recovered recently, and the market is expected to rise steadily
Affected by the overseas tightening cycle and the maintenance of risk aversion by investors, the outflow of funds from the North has accelerated since early March and has improved recently China International Capital Corporation Limited(601995) pointed out that from the perspective of trading, the “sharp decline” stage of the market may come to an end with the sharp rebound of the market on March 16, and the market sentiment may ease under “negative feedback”; On the other hand, the market rebounded on March 16, and the sharp outflow of funds from the middle and North has also been curbed, indicating that the position adjustment of foreign capital has been gradually completed. On March 16, the financial stability Commission of the State Council released a positive signal for the care of the capital market, and also painted on the governance of the platform economy and the stability of Hong Kong’s financial market, greatly alleviating market concerns. In this context, the substantial outflow of foreign capital may have come to an end .
Note: net purchase data of northbound capital since this year (closing on March 18)
At present, A-Shares have successfully rebounded for many days. Looking forward to the future market, Central China Securities Co.Ltd(601375) pointed out that after the phased low of Shanghai index has been found recently, with the continuous entry of incremental funds into the market, it is expected to promote the stock index to rise steadily . It is suggested to continue to pay attention to the changes of policy, capital and external market. It is expected that the short-term shock rise of the Shanghai index is more likely, and the short-term slight rise of the gem is more likely. Investors are advised to focus on investment opportunities in new energy, medical services, real estate, electronic components and other industries in the short term, and continue to focus on investment opportunities in undervalued blue chips in the middle line.
