On May 20, FTSE Russell, an international index compilation company, announced the quarterly review results of the FTSE global stock index series. The adjustment will officially take effect after the closing on June 17P align = "center" Image Source: FTSE Russell
This adjustment involves fewer Chinese stocks. The lithium battery leader Wuxi Lead Intelligent Equipment Co.Ltd(300450) , with a market value of more than 70 billion yuan, has become the only subject of A-share large cap stocks that have been eliminated. Four new Hong Kong stocks are included, all of which are small cap stocks; Excluding one B share, it is ST Shanhang B.
lithium battery faucet Wuxi Lead Intelligent Equipment Co.Ltd(300450) kicked by the group
The announcement shows that four new Hong Kong stocks in the FTSE global stock index series are micro cap stocks, including Yingtong technology, Hongcheng environmental protection technology, Connett optics and uju holding At the same time, one A-share is excluded from the category of large cap stocks, which is Wuxi Lead Intelligent Equipment Co.Ltd(300450) ; One B-share is excluded from the micro cap stocks, which is ST Shanhang B.
It is worth noting that the lithium battery leader Wuxi Lead Intelligent Equipment Co.Ltd(300450) with a market value of 77.6 billion yuan was eliminated, becoming the only A-share large cap stock excluded this time. The announcement showed that the reason why the stock was eliminated was that it did not pass the review of free circulation adjustment. This means that Wuxi Lead Intelligent Equipment Co.Ltd(300450) 's foreign shareholding ratio has reached the upper limit and has been eliminated due to insufficient space for foreign investment.
According to the official website of Shenzhen Stock Exchange, as of May 19, the proportion of foreign capital holdings of 10 stocks, including Wuxi Lead Intelligent Equipment Co.Ltd(300450) , Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) , Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) , Chacha Food Company Limited(002557) , etc., had reached the warning line.
Since the beginning of this year, Wuxi Lead Intelligent Equipment Co.Ltd(300450) 's foreign shareholding ratio has remained high, exceeding the warning line of 27% for many times. According to the latest data, the total number of A-Shares held by foreign investors in Wuxi Lead Intelligent Equipment Co.Ltd(300450) is 416 million, accounting for 26.62% of the total share capital of the company.
According to the regulations of the exchange, when the proportion of foreign capital holdings exceeds 24%, the latest foreign capital holdings of the shares 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.
When Wuxi Lead Intelligent Equipment Co.Ltd(300450) is excluded by FTSE Russell because the proportion of foreign capital is too high and there is no sufficient investment space for foreign capital. It is understood that, generally speaking, 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.
ST Shanhang B faces delisting risk and is excluded
Another excluded ST Shanhang B was warned of delisting risk by Shenzhen Stock Exchange in April this year because the company's net assets were negative in 2021.
From the annual report, the company has suffered serious losses for two consecutive years: the company's net profit loss of 2.382 billion yuan in 2020 and 1.814 billion yuan in 2021. The first quarter report recently disclosed by the company also suffered a serious loss, reaching 1.332 billion yuan, and the net profit attributable to the parent decreased by 59.48% year-on-year. The company's share price has fallen all the way and its market value has shrunk sharply.
Facing the delisting risk, the company said in the announcement that the board of directors will actively seek support and take active measures to eliminate the delisting risk. The main measures include paying close attention to production organization and income control; Strive for high-quality routes and explore opportunity markets; Strengthen cost control to ensure capital safety; Deepen synergy and promote strategic resource sharing.
foreign investors are optimistic about the trend of A-Shares for a long time and do not change
Since this year, the trend of A-Shares has been volatile, but the trend of foreign investors optimistic about A-Shares remains unchanged. Zhao Yaoting, global market strategist of Jingshun Asia Pacific (excluding Japan), commented that China's liquidity situation was further relaxed, and the central bank cut the five-year loan market quotation rate (LPR) by 15 basis points from 4.60% to 4.45%, the largest decline since 2019.
Zhao Yaoting believes that the reduction of LPR and the lower limit of mortgage interest rate for first-time buyers announced by regulators last week may revive housing sales. In addition, according to the economic data of retail sales and factory activity released earlier this week, consumption and economic activity are expected to pick up in late 2022.
Goldman Sachs China equity strategy research team believes that the risk return of "investment recovery beneficiary stocks" has become attractive. Looking to the future, Goldman Sachs judged that manufacturing related stocks will lead. With the normalization of consumer activities, consumer related stocks are expected to rebound later. Focusing on the manufacturing economy will bring more favorable risk returns to investors engaged in recovery trading.
