News summary
The adjustment of the MSCI China Index includes 8 A shares and 2 Hong Kong stocks, excluding 41 A shares and 15 Hong Kong stocks. The weights of Tencent Holdings and others are increased, and the weights of Zaiding Pharmaceutical and others are decreased, which may affect liquidity. The adjustment will take effect on May 31.
Newsletter text
[Huatai Securities Research Report reveals that the MSCI China Index has included changes, affecting investors 'concerns] Huatai Securities released on May 16luckyduckcasinonodepositbonusThe research report pointed out that MSCI's official website has announced the results of the semi-annual index adjustment. Among them, the MSCI China Index added 8 A shares and 2 Hong Kong stocks, while excluding 41 A shares and 15 Hong Kong stocks. It is reported that this round of adjustment will officially take effect after the close of trading on May 31. Three key points were emphasized in the research report. First, since 2021, MSCI China A shares have experienced 13 rounds of adjustments. These adjustments may bring a stable window of excess returns to investors, especially during the semi-annual review, when the event effect is more significant. However, since the adjustment of Hong Kong stocks is relatively small, the pattern may not be as obvious as that of A shares. Secondly, before and after the index adjustment takes effect, the scale of foreign capital inflows into China's equity market will increase significantly. Finally, in terms of individual stocks, Tencent Holdings, Minmetals Resources, Hisense Home Appliances A and Kangfang Biotech have led the way in weight increases, while Zaiding Pharmaceutical and Kingboard Group have more significant declines in weights. Investors should pay attention to the possible positive/negative liquidity impact. In addition, the research report also pointed out that changes in the size of foreign investment flowing into China's equity market may bring important signals to investors. Before and after the index adjustment takes effect, the expansion of foreign capital inflows may reflect the market's positive view on the inclusion of stocks, and investors should pay close attention to relevant developments. At the same time, changes in the liquidity of individual stocks with large changes in weights, such as Tencent Holdings and Minmetals Resources, will also have an important impact on investors 'trading decisions and should be closely watched and carefully considered. To sum up, this adjustment of the MSCI China Index will have multiple impacts on the market. Investors need to pay attention to the individual stocks that are included and excluded, as well as stocks with large changes in weights, in order to capture investment opportunities and avoid potential risks. At the same time, changes in the flow of foreign capital will also provide important information to the market, and investors should pay close attention to relevant developments in order to make informed investment decisions.
