After the market on March 15 and before the market on the 19th, there will be 76 A-shares, which will become the new constituent stocks of the FTSE Russell Global ** Index, and another will be transferred from the constituent stocks. The results are shown in the recently released semi-annual index review report of the FTSE Russell Global** Index.
According to the FTSE Russell report, its flagship FTSE Global** Index Series includes a total of 126 China** stocks, 10 stocks, 74 small-cap stocks and 42 micro-cap stocks. Among them, the newly transferred stocks are Capital **, CSPC Pharmaceutical Innovation, Guobo Electronics, Haiguang Information, Jianyuan Trust, MGI, Rongchang Biotech, United Imaging Medical, Longsys, and Weijie Chuangxin.
After this adjustment, the number of constituent stocks of the FTSE China A All Index (Stock Connect) will increase from the current 1,898 to 1,973. Based on the recent market capitalization, the market capitalization of A-shares in the FTSE Russell Emerging Markets Index will increase from about 571% to about 618%, as a percentage of the market capitalization of the FTSE World Index, will increase from about 055% to about 061%。
FTSE Russell index products cover more than 70 countries and regions around the world, and about $20 trillion in assets are invested against FTSE Russell index products. Following MSCI's announcement of A-share inclusion in 2017, FTSE Russell also announced in September 2018 that A-shares would be included in its global** index series, classified as Minor Emerging Markets, and from June 2019 onwards.
In September last year, with the expansion of the northbound target of the Shanghai-Shenzhen-Hong Kong Stock Connect, FTSE Russell transferred 623 A-shares at one time, including 409 in Shanghai and 214 in Shanghai. In addition, according to FTSE Russell's announcement on August 3, 2023, the inclusion factor of A-shares newly transferred after the expansion of Shanghai-Shenzhen-Hong Kong Stock Connect in September 2023 will be increased from 125% to 25%, the adjustment will take effect on March 4, and the index rebalancing will be carried out on March 15.
Since the beginning of this year, the FTSE 100 index has accumulated **065%。As of Feb. 27**, the FTSE 100 was at 768302 points, down 002%。Among them, FTSE China A50 closed at 1186128 points, up 049%；The FTSE China A200 closed at 924784 points, up 027%；The FTSE China A400 closed at 730699 points, up 204%；The FTSE China A600 closed at 813021 points, up 128%。
According to industry analysis, this adjustment is expected to attract more new passive allocation funds for A-shares, and will drive overseas funds to focus on the allocation of Chinese assets, further enhancing the confidence of international investors in allocating A-shares.