In June 2020, the first phase of FTSE Russell’s A-share inclusion plan was officially completed, and the adjustment frequency of constituent stocks was set to once a quarter.
Today (June 1), FTSE Russell announced changes to the index review of the FTSE China 50 Index and the FTSE China A50 Index, which will take effect after the market closes on June 17.
It is understood that 3 A-shares have been excluded from this seasonal adjustment, namely Zhifei Bio, Gree Electric, and PetroChina.
Excluding Gree Electric, PetroChina, and Zhifei Biology,
According to the official website, the three A-shares newly included in the FTSE China A50 Index are Conch Cement, China CITIC Bank, and Tongwei; the three A-shares that have been excluded are Zhifei Bio, Gree Electric, and PetroChina. .The changes are effective after the market closes on June 17.
At the same time, today FTSE Russell also made quarterly adjustments to the FTSE China 50 Index. Two Hong Kong stocks Longyuan Power and China Railway will be included in the FTSE China 50 Index. At the same time, two Hong Kong stocks, Smol International and Shun Yuguang Technology will be excluded.
According to the arrangement, the next seasonal adjustment will be in September this year.
The most recent seasonal adjustment to this adjustment occurred in March this year. On March 3, FTSE Russell announced changes to the FTSE China 50, China A50 and other indices. Savings Bank, while excluding Aier Ophthalmology, China Life, and Yiwei Lithium.
According to FTSE Russell's official website, as of the close of trading on May 31 this year, the most weighted A-share in the FTSE China A50 Index was Kweichow Moutai (with an index weight of 14.27%), ranking second, third, fourth, and fourth in weight. The five A-shares are CATL (with an index weight of 5.98%), China Merchants Bank (with an index weight of 5.15%), Wuliangye (with an index weight of 4.19%), and Yangtze Power (with an index weight of 3.44%).
However, Zhifei Bio, Gree Electric Appliances, and PetroChina, which have been transferred out of the FTSE China A50 Index this season, currently have a low weight in the A50 Index, 0.88%, 1.2%, and 0.89%, respectively.
FTSE Russell's first phase of A-share inclusion plan has been completed
In September 2018, MSCI's rival FTSE Russell announced the inclusion of A shares, nearly four months after MSCI announced the inclusion of China A shares in its global index system.The first time FTSE Russell officially included A shares was in June 2019. One year later, in June 2020, the FTSE Russell A shares inclusion factor rapidly increased to 25%, which marked the first phase of FTSE Russell’s inclusion. The plan is officially completed.
It is understood that the construction basis of the FTSE Russell and MSCI indexes are basically the same, and they must be products that can be purchased in the mainland-stock Connect.
On May 20 this year, FTSE Russell announced the quarterly review results of the FTSE global stock index series. The adjustment of the leading intelligence became the only A-share large-cap stock subject to be excluded.At that time, some analysts believed that this was mainly because the foreign shareholding ratio of Pioneer Smart reached the upper limit at that time, and was excluded due to insufficient space for foreign investors to buy.
At the end of October 2020, the Shanghai and Shenzhen Stock Exchanges revised the implementation rules for QFII and RQFII transactions, which will come into force on November 1, 2020.It is worth noting that the revised rules adjust the initial disclosure target of foreign shareholding ratio from 26% to 24%.At the same time, it is stipulated that the total amount of A shares or domestically listed shares held by all foreign investors in a single listed company shall not exceed 30% of the total shares of the company.
