Original title: Big news! The third step of MSCI's inclusion of A-shares is here, tens of billions of funds are on the way, and 189 mid-cap stocks will make their debut
The big Friday is coming!
Just now, MSCI announced the inclusion of A-share expansion arrangements, and the inclusion factor of A-shares in the index has been increased to 20%.
MSCI pointed out in a press release that 204 A-shares will be newly added to the MSCI China Index with an inclusion factor of 20%, including 189 mid-cap stocks. In addition, the inclusion factor of 268 A-shares that have entered the MSCI China Index will be increased from 15% to 20%. These stocks will enter the MSCI International Index and enjoy the subsequent incremental funds. This is the third step in MSCI's expansion of A-shares. After completion, A-shares will account for 4.1% of MSCI's emerging markets.
How will A-shares open today? All eyes are on you.
The updated list of large-cap stocks is as follows:
Source: MSCI
A highlight of this expansion is that MSCI will include a factor of 20% at one time Include mid-cap stocks. Mid-cap stocks in A-shares have achieved a "leap" from 0 to 20% in the MSCI index. This expansion is obviously beneficial to mid-cap stocks. MSCI included 189 mid-cap stocks this time. The list is as follows. By November 26, the index inclusion will take effect, and MSCI’s first phase of A-share inclusion arrangements has been completed. A-shares have also completed a transformation from 0 to 20% in the international index of the world's number one index giant.
Source: MSCI
43 billion yuan of incremental funds waiting
China Merchants Securities estimates that this expansion will bring a passive increase of 43 billion yuan to A shares. funds. Among them, the ratio of passive incremental funds attracted by large-cap stocks and mid-cap stocks is 4:3.
Image source: China Merchants Securities Research Report
China Merchants Securities analysis pointed out that from the perspective of industry distribution, the large-cap stocks included in MSCI are mainly distributed in banking, non-bank finance, food and beverage, Medicine and health; the five industries with the highest industry distribution of mid-cap stocks to be included are medicine and biology, computers, electronics, chemicals, and food and beverages. Medical biology, computers, and electronics are also the top three weighted industries in the GEM 50 Index. The inclusion of mid-cap stocks by MSCI this time is good for the blue chips represented by the GEM 50. The GEM 50 Index deserves attention.
Judging from the net inflow of northbound funds in the past seven days, mid-cap stocks have not yet received sufficient attention. It is expected that there will be more net inflows before the effective date of index inclusion on November 26.
A substantial net inflow of northbound funds
Midea is only one step away from "buying the explosive"
According to statistics, on November 5, the number of shares held by foreign investors in Midea Group reached 27.19%. According to relevant regulations, when the proportion of A-shares held by foreign investors reaches 28%, the Hong Kong Stock Exchange will no longer accept buying orders, that is, the individual stocks are "bought out." At present, it is only one step away from buying a hot beauty.
As of November 7, northbound funds have mainly flowed to consumer leaders and financial stocks in the past seven days. Among the top ten stocks with net inflows, Gree Electric Appliances had a net inflow of 2.940 billion yuan, Midea Group had a net inflow of 2.046 billion yuan, Yili Shares had a net inflow of 1.533 billion yuan, and Wuliangye had a net inflow of 1.494 billion yuan. The top ten stocks accounted for almost half of the net inflow of northbound funds in the past seven days.
The Chinese ETFs listed in the United States have changed last night
One hour after the opening of US stocks last night (now entering winter time, US stocks opened at 22:30 Beijing time), two Chinese ETFs listed in the United States ETFs rose sharply.
iShares China Market (FXI) price trend data source: Bloomberg Terminal
One of them is iShares China Market, which rose 5.88% as of 23:30 Beijing time; the other Only the Chinese ETF "iShares MSCI China ETF" rose by more than 8% in one hour.
The iShares MSCI China ETF tracks the MSCI China Index and can capture the capital inflows brought about by the expansion of MSCI A shares. Currently, iShares China’s market size is US$4.46 billion; iShares MSCI China’s size is US$3.9 billion.
iShares MSCI China ETF (MCHI) price trend data source: Bloomberg Terminal
Currently, the total number of Chinese ETFs listed in the United States is nearly 16.44 billion U.S. dollars. In the United States, which exceeds 2 trillion U.S. dollars, It accounts for a small proportion of the ETF market, which also gives many institutions room to deploy Chinese ETFs overseas. Among the overseas listed Chinese ETFs (subjects include A-shares, Hong Kong stocks, and Chinese concept stocks), the ones with the largest growth in scale in the past week are industry-leading ETFs, Internet ETFs, etc.
The top four Chinese ETFs listed in the United States have expanded in scale in the past week (as of November 7)
Data source: ETF
Pay attention to changes in foreign securities firms’ shareholdings< /p>
When the index inclusion took effect on September 20, some stocks encountered violent position building. Vanhe Electric is an example. According to media reports, the Hong Kong stock institutional shareholding information disclosed by the Hong Kong Stock Exchange that evening showed that 17 institutional seats held the stock through the Shanghai-Shenzhen Stock Connect. Compared with the previous trading day, Jixun Asia Pacific Co., Ltd. increased its holdings the most, and all its stocks were increased on that day. It is understood that Jixun Asia Pacific is a securities firm, and many overseas hedge funds trade through Jixun Asia Pacific's seats. This situation is expected to continue on November 26, the index effective date. Jixun Asia Pacific's shareholding status is also worthy of attention.
Data source: choice
(Source of article: China Securities Journal) Solemn statement: The purpose of releasing this information is to spread more information and has nothing to do with the position of this site.