FTSE Russeller A weight has been increased again.
According to the list of changes in the flagship index series in June released by FTSE Russell's official website, FTSE Russell has newly included two A-share stocks, and A-share stocks have not been excluded. After the change takes effect, the inclusion factor of A-shares in the FTSE Russell Global Stock Index series will rise from 17.5% to 25%.
This means that after MSCI completed the inclusion of the first phase of A-shares, the first phase of FTSE Russeller A will be completed soon. According to institutional estimates, the increase in the inclusion factor of FTSE Russell A-shares to 25%, will bring a total of more than 25 billion yuan of incremental funds to A-shares.
As of May 22, the cumulative net inflow of northbound funds has exceeded 50 billion yuan this year. As the epidemic gradually eases, the inflow of foreign capital has accelerated significantly in the past two months.
According to the specific list, the two newly included stocks are Zhejiang Commercial Bank and Chongqing Rural Commercial Bank.
FTSE Russell said that the index adjustment will come into effect at the close of June 19 (Friday) or on the opening of June 22 (Monday). However, what is announced this time is only a preliminary list, and there may be adjustments before the index takes effect.
Through this index adjustment, how many new incremental funds will bring to A-shares? 10 billion
Previous official estimates showed that the original plan to increase the inclusion factor of A-shares from 15% to 25% will bring about a passive capital inflow of US$4 billion. Guojin Securities expects that the adjustment is expected to bring passive incremental funds to A-shares about 28 billion yuan.
Another institutional analyst believes that the third step expansion ratio of FTSE Russeller A's first phase increased from 15% to 17.5%, an increase of 2.5 percentage points, and the changes in the A-share inclusion factor adjustment this quarter increased by 7.5 percentage points. It is estimated that this inclusion is expected to bring about RMB 21 billion in passive incremental funds to A-shares when it comes into effect. In terms of active capital, Guangdong Securities previously estimated that the third step of expansion in the first phase is expected to bring nearly 6 billion yuan of active capital to A-shares. Based on this brief estimate, this expansion will bring about 4.5 billion yuan of active incremental funds. Overall, this round of adjustments will bring more than 25 billion yuan of incremental funds to A-shares.
Great Wall Securities commented that compared with the MSCI index, the amount of funds tracking the FTSE Russell Index is relatively small, and the increase in funds may be relatively limited, but the increase in this inclusion ratio is expected to further increase market risk preference.
10 days ago, another international index compilation giant, MSCI, announced the results of the 2020 semi-annual index review. This quarterly adjustment did not change the inclusion factor of A-shares in relevant indexes. Only the list of constituent stocks in some indexes has been adjusted. The adjustment results will take effect after the closing of the market on the 29th. Among them, MSCI China A-share index added 45 constituent stocks and 34 constituent stocks were excluded.
htmlOn the evening of May 7, the central bank and the State Administration of Foreign Exchange officially implemented the important regulations, abolishing the management requirements for domestic securities investment quota of foreign institutions, and further facilitating overseas investors to participate in my country's financial market.Market analysis said that this move by the central bank is conducive to foreign institutions' investment and further increasing investment in the domestic securities market, including A-shares, and also to further integrate A-shares into international indexes such as MSCI and introduce more international funds to A-shares.
According to the research report of Haitong Securities , under the disturbances of foreign market sharp drops in the past few years, foreign capital has experienced several phased outflows, but they have quickly flowed back in. In the past three years, foreign capital has an average annual net inflow of about 300 billion yuan. In addition, the epidemic situation in my country is controllable and the resumption of work is orderly. The valuation and securitization rate of A shares are significantly lower than that of US stocks. It is expected that the net inflow of foreign capital will be close to 300 billion yuan throughout the year.
It can be said that there is no doubt that international index giants have expanded A-shares to create favorable capital. The differences between institutions lie in the specific amount. For the current market, favorable capital will have a certain driving effect on the short-term A-share trend.
So what stocks are foreign investors favored in recently? 4 4 stocks with a market value of more than 10 billion yuan 26
have been controlled in China with the epidemic. Since April, northbound funds have returned to A-shares. Data shows that in April, the net inflow of northbound funds was 53.258 billion yuan, the sixth largest single-month net inflow in history; in May, the return trend of northbound funds continued, and as of the 22nd, the cumulative net inflow was 14.866 billion yuan.As of now, the net inflow of northbound funds since April has covered the net outflow in March.
Since April, what stocks have northbound funds deployed?
Wind statistics show that from the latest shareholding market value, as of May 21, there were 26 stocks with a shareholding value of more than 10 billion yuan in Shanghai and Shenzhen Stock Connect, of which the highest was Kweichow Moutai , with a shareholding market value of 145.409 billion yuan, accounting for 8.47% of the circulating shareholding capital; the two shares of Ping An and Hengrui Medicine have a shareholding market value of more than 50 billion yuan.
Judging from the changes in the proportion of outstanding shares, since April (as of May 21), the shareholding ratio of the 26 shares of the Shanghai-Shenzhen Stock Connect has increased by more than 2 percentage points from the end of March. Among them, Yiyuan Communications ranked first by 6.14 percentage points, and its latest shareholding accounts for 12.51% of the outstanding shares. In addition, the shareholding ratio of five individual stocks including Weil Co., Ltd., Jinyu Medical, La Chapelle, Ruike Laser, and Perchoa increased by more than 4 percentage points from the end of March.
The market mystery of the food and beverage industry: Foreign capital is selling, but 10 companies are still "studying" by overseas institutions
Since May, the drinking and taking medicine market has been staged again. Some food and beverage stocks mainly in Kweichow Moutai have hit new highs one after another, with the cumulative increase of the industry index in the month reaching 6.06%, ranking first in the first-level industry of Shenwan , and becoming the focus of attention of all parties in the market.
After statistics from Securities Daily, it was found that in the overseas institutional survey list, 62 A-share companies have been surveyed since May, among which 10 listed companies in the food and beverage industry have been surveyed by overseas institutions, becoming one of the most concerned industries for foreign capital.
As we all know, food and beverage stocks led by Kweichow Moutai and Wuliangye have been held by northbound funds for a long time. China Securities analysts believe that food and beverage stocks meet the aesthetics of foreign capital and funds are expected to continue to flow in for a long time.
Qianhai Kaiyuan Fund chief economist Yang Delong said in an interview with a reporter from Securities Daily, "Food and beverage is a sector with relatively stable performance growth in the consumer field. In the first quarter of this year, due to the impact of the epidemic, the overall growth rate of the consumer sector declined, but the food and beverage industry was not affected so much, and the recovery speed was relatively fast."
But from the actual market, the food and beverage market fell back last week, and Kweichow Moutai was sold at a net price of 821 million yuan on Friday. The previous purchases were sold at a total of more than 62 million yuan in the whole week. Wuliangye was sold for 863 million yuan this week, Yanghe shares were sold for 221 million yuan, Yili shares were sold for 154 million yuan, and Qianhe Flavor Industry was sold for 135 million yuan. In addition, 25 shares including New Hope, Daqin Railway , Huiding Technology, Ganfeng Lithium Industry were also net sold by northbound funds this week for more than 100 million yuan.
Investors may wish to pay attention to vaccine concept and engineering machinery concept . There is no need to say much about the reason for paying attention to the former, and the news favorable aspect of the latter is that as the Chinese government continues to introduce economic stimulus policies, the demand for construction machinery has increased rapidly. According to statistics from the China Engineering Machinery Industry Association, China's hydraulic excavator sales increased by 65% year-on-year to 43,000 units, a record high in a single month. In addition, large enterprises such as Sany Heavy Industry have raised the price of construction machinery by 5% to 10% since April, and the momentum of new orders remains unabated.
Disclaimer: The above content does not recommend stocks and does not constitute investment advice. You can bear the risks of operating based on this. Be cautious when entering the market with risks.
