rpggamescrypto| The MSCI Index has been adjusted to newly include these A shares (list)
In the early morning of May 15, Beijing timeRpggamescryptoMSCI, an international index compiling company, released its quarterly index adjustment results in May 2024, which will take effect after the close on May 31, 2024.
In this adjustment, 42 stocks were added to the MSCI global standard index, including 8 A-share targets.RpggamescryptoAt the same time, 121 shares were removed, including 41 A-share targets.
Market analysts pointed out that with the index adjustment, fund products that follow these indices will also be passively adjusted, and related stocks may have "abnormal" magnification of trading volume and volatility.
The latest changes to the MSCI list
According to Mingsheng, this quarterly adjustment announced the addition and elimination of major index series, such as MSCI global standards, MSCI global small caps, MSCI global small caps, and so on. MSCI quarterly review does not involve A-share factor changes, at the same time, in accordance with the usual practice, according to the Shanghai and Shenzhen Stock Connect adjustment, MSCI for some A-share stocks are still transferred in and out.
The announcement shows that the MSCI global standard index added 42 stocks, excluding 121 stocks, specific to the MSCI China A-share index, 8 new targets, excluding 41 stocks.
Specifically, the new stocks included in the MSCI China A-share Index include Hisense Home Appliances, CITIC Special Steel, Wanfeng Aowei (rights protection), Jinxin, Ping Coal, Nanjing Iron and Steel Co., Ltd., Tiandi Science and Technology, and CNOOC Development.
MSCI routinely adjusts all its indices four times a year, including semiannual reviews with larger adjustments in May and November, and quarterly reviews with smaller adjustments in February and August. Each adjustment is mainly based on objective quantitative indicators, such as market capitalization and liquidity.
China International Capital Corporation believes that as this adjustment is a semi-annual adjustment, it involves a wide range of index increases and other adjustments, and the impact may also be more.
How big is the impact?
With the adjustment of a number of index stocks in MSCI, the relevant index funds will also be adjusted, and the new companies will get more capital allocation, while the companies that have been eliminated will be passively sold by the relevant index funds.
In terms of capital flow, according to the historical experience of index adjustment, passive funds usually adjust their positions on the last day, that is, May 31, in order to reduce the tracking error of the index as much as possible. as a result, we often see the "abnormal" magnification of the trading of stocks with large changes in weight, especially in the late trading. In contrast, active funds do not exist this constraint, you can choose the opportunity to choose the time of configuration. China International Capital Corporation suggests paying attention to the potential impact of some illiquid stocks.
In terms of stock price impact, after the results are announced but before the official implementation date, there will also be some arbitrage funds to distribute the corresponding stocks according to the official results, especially those unexpected results that have not been fully predicted by the market before. However, it should be noted that although passive funds "must" adjust their positions according to the weight change on the formal implementation date of the adjustment, the actual changes in stock prices during this period may not be consistent with the weight adjustment direction. on the contrary, it will be more affected by the contrast between arbitrage funds and passive funds, and there is no lack of stock prices falling on the day of adjustment.
Editor: Li Dan
Proofread: Yang Lilin
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