The number of FTSE China All-Index (Connected) constituents increased by more than 70 in one go.

recently, the United Kingdom's FTSE Russell Index Company (FTSE Russell) released the global stock index (FTSE Global Equity Index Series) semi-annual index review report. The report shows that 76 new A- shares will be transferred and 1 will be transferred.

after this adjustment, the number of FTSE China A all index (interconnection) constituent stocks will increase from the current 1898 to 1973. Based on recent market capitalization, A- shares will increase from about 5.71 per cent to about 6.18 per cent of the FTSE Russell Emerging Markets Index and from about 0.55 per cent to about 0.61 per cent of the FTSE Global Index.

surging news reporters combed shows that the FTSE China A all-index newly included in the-share company type is rich, large-cap stocks (Large Cap), small-cap stocks (Small Cap) and micro-cap stocks (Micro Cap) are all.

among them, there are 10 large-cap stocks, namely capital securities (601136), xinnuowei (300765), guobo electronics (688375), haiguang information (688041), jianyuan trust (600816), huada zhizao (688114), Rongchang biology (688331), lianying medical (688271), jiangbolong (301308), weijie chuangxin (688153), etc.

There are two microcap stocks, namely, Rongzhi Nissin (688768) and Kejingyuan (301372). At the same time, dozens of small-cap stocks such as Baichuan Energy (600681), China Television Media (600088), Baiyang Pharmaceutical (301015), Fuchuang Precision (688409) and Wanan Technology (002590) were also transferred.

it is worth noting that, in addition to the increase in index stocks, according to FTSE Russell's announcement on August 3, 2023, the inclusion factor of a shares newly transferred after the Shanghai-Shenzhen-hong kong stock connect expansion in September 2023 will be increased from 12.5 to 25% in March this year. the adjustment measures will take effect on March 4 and the index will be adjusted on March 15.

What is the impact of the larger adjustment of the FTSE China Index on A shares and what market signals have been released?

Market participants said that on the one hand, with the inclusion of more A- shares and the improvement of the inclusion factor, it 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.

"on the other hand, as one of the important tools for value discovery, the adjustment of the FTSE China Index shows the recognition of China's capital market and the deep understanding of economic transformation and upgrading by international institutions." Other analysts said.

The analyst pointed out that the current A- share investment is cost-effective, showing strong resilience, the international attraction is gradually increasing, and the allocation of foreign capital to the-share market is increasing.

"At the same time, the fundamentals of China's economic stability and long-term improvement have not changed, and the tone and direction of China's capital market to promote reform and development through opening up have not changed. The confidence and potential of international investors in allocating A shares are still huge, and China's capital market is still an indispensable and important part of emerging markets." The above market participants stressed.

It is reported that FTSE Russell (FTSE Russel) was established in London in 1984 and is a wholly owned subsidiary of the London Stock Exchange. FTSE Russell is a world-renowned index institution with the same reputation as Mingcheng. Its index products cover more than 70 countries and regional markets around the world, and about US $20 trillion billion of assets are invested based on FTSE Russell index products.

after mingsheng company announced its inclusion of a shares in 2017, FTSE Russell announced in September 2018 that it would include a shares in its global stock index series. the scope of inclusion is the eligible constituent stocks of FTSE China a all index (interconnection)(FTSE China a cap (stock Connect) index). the inclusion ratio is 5% of the investable market value of eligible stocks, and has gradually increased to 25% since then.

in September 2023, with the expansion of the northbound target of the Shanghai-Shenzhen-Hong Kong Stock Connect, FTSE Russell transferred more than 600 A shares at one time, taking "two steps", that is, the inclusion factor of the newly transferred more than 600 A shares in September 2023 was set at 12.5, and it was raised to 25% in the semi-annual review of the index in March 2024.