A few days ago, FTSE Russell, a well-known index compilation company in the world, released the quarterly review results of its flagship index, FTSE global stock index series (GEIs), in February 2021. According to the announcement, a total of 129 A-share targets have been added to FTSE GEIs this time, including 13 large cap stocks, 16 medium cap stocks, 97 small cap stocks and 3 micro cap stocks, which are clustered in the pharmaceutical and biological and mechanical equipment industries, with 20 and 12 stocks respectively. The change will take effect after the close on March 19 (before the opening on March 22).
This expansion, 11 Technology Innovation Board companies officially entered the FTSE GEIs index, which is also the first time technology innovation board stocks to enter the international market. The 11 companies of science and Technology Innovation Board include LanChi technology, RuiChuang Weina, Junshi biology, Haier biology, Western superconductor, kangxinuo, Zhongwei company, Hangke technology, Anji technology, China communication, Haohai Shengke.
According to the disclosed information, according to the 25% Inclusion factor, the inclusion of the FTSE GEIs index will bring about US $100 million (about RMB 650 million) of incremental investment funds for 11 enterprises in the science and technology innovation board. Considering the amount of capital driven, it is estimated that billions of funds will follow the market.
According to the previous plan, FTSE Russell only made routine technical adjustments to the index components this time, and did not involve changes in the A-share inclusion factor. It should be noted that this announcement is only a preliminary list, and FTSE Russell will slightly adjust the above list according to market conditions (such as the adjustment of Shanghai and Shenzhen Stock general standard). The final list will be determined before the effective date of the index.
China Merchants Securities said that the inclusion of the science and technology innovation board into the international market index is conducive to promoting the integration of the science and technology innovation board with the international market and improving the information disclosure level and corporate governance ability of listed companies. In addition, the science and Technology Innovation Board focuses on supporting high-tech industries and strategic emerging industries. Such enterprises have always been favored by overseas investors and are expected to attract more foreign investment in the future.