Recently, the international index compilation company MSCI (MSCI) announced the latest quarterly index adjustment results in 2022, involving indexes including MSCI Global Standard Index, MSCI China Index, MSCI China A-Share Onshore Index, MSCI China All-Share Index, etc. It will take effect on September 1.

　　As the most used benchmark index by portfolio managers worldwide, MSCI index adjustments have historically been the focus of attention.

Its index adjustment is divided into regular adjustment and temporary adjustment. Regular adjustment occurs in February, May, August, and November every year, and the semi-annual adjustment is relatively large.

The overall scale of the adjustment of the constituent stocks of the MSCI index is not large. The most concerned MSCI China Index has newly included 7 Chinese stocks in this adjustment, namely Tongrentang, China Merchants Steamship, Paineng Technology, Salt Lake, Tianqi Lithium, Yuntianhua, Zangge Mining.

　　Judging from the performance and market value of the newly included targets, they have performed well and are at the leading level in the industry.

For example, Tianqi Lithium currently has a total market value of more than 180 billion yuan. The 2022 semi-annual performance forecast shows that the net profit attributable to shareholders of listed companies in the first half of the year is 9.6 billion to 11.6 billion yuan, a year-on-year increase of 11089.14% to 13420.21%; The current market value of Salt Lake shares exceeds 150 billion yuan. The 2022 semi-annual performance forecast shows that the net profit attributable to shareholders of listed companies in the first half of the year is 9 billion to 9.4 billion yuan, an increase of 325.63% to 344.55% over the same period last year.

　　From the perspective of the industries to which the new targets belong, most of them are closely related to new energy.

Yang Delong, chief economist of Qianhai Open Source Fund, believes that this reflects the recognition of international capital for new industries and new formats in the Chinese market.

In recent years, my country's strategic emerging industries such as new energy, intelligent manufacturing, and new materials have developed rapidly. Foreign investors have increased their allocation of related stocks, which is not only optimistic about the development of related industries, but also expects to obtain good benefits from them.

　　The market believes that being included in the MSCI China A-share index has a positive stimulating effect on the short-term stock price of listed companies.

"The MSCI China A-Share Index only includes stocks under the interconnection mechanism, and is the key target for foreign capital to invest in A-shares. Every regular index adjustment will bring significant position adjustments to the constituent stocks." Zhu Dinghao, Chief Analyst of Guoyuan Securities Gold Industry express.

　　In terms of capital flow, CICC analyzed, according to the historical experience of index adjustment, passive funds usually choose to adjust positions on the last day, which is August 31, in order to reduce the tracking error of the index as much as possible. You will see an abnormal increase in the turnover of stocks with large changes in weight, especially in late trading.

In contrast, active funds do not have this constraint, and can choose the timing of allocation.

　　"In terms of stock price impact, after the results are announced and before the official implementation date, some arbitrage funds will also allocate corresponding stocks according to the official results. However, it should be noted that although passive funds must be adjusted according to the weight changes on the official implementation date of the adjustment, However, the actual changes in stock prices during this period may not be in the same direction as the weight adjustment. Instead, they will be more affected by the strength of the advance arbitrage funds and passive funds. Before that, there were no shortage of newly included or weighted stocks falling on the day of the adjustment. situation,” said CICC.

　　Since MSCI included A-shares in the global flagship index in 2018, the weight of the Chinese market has continued to increase in the MSCI Emerging Markets Index.

"In the past four years, the growth rate of foreign capital stock has been close to an annualized 50%, accounting for about 5% of the circulating market value of A-shares, and it is still growing. The ecology of overseas investors investing in A-shares mainly through interconnected channels.” Wei Zhen, Managing Director of MSCI and Head of Asia-Pacific Research Department, previously stated that the overall investment direction of foreign capital is closely related to the adjustment and development of China’s economy itself. From the point of view, overseas investors relatively prefer high-growth technology-based industries, and are very concerned about the introduction of the "dual carbon" policy, hoping to benefit from the trend of high-quality economic growth and green growth in China's economy.

　　“Thanks to a relatively more favorable monetary and fiscal policy environment, Chinese equities have recently rebounded and outperformed. At the same time, Chinese equities are still more attractively valued compared to major global stock markets, and the long-term MSCI China index The price-earnings ratio is much lower than the MSCI US index and the MSCI global index." International asset management agency Aberdeen recently released a research report, saying that looking forward to the second half of the year, based on factors such as the improvement of the epidemic prevention and control situation and the relatively low valuation, there are sufficient reasons for China The outlook for the stock market remains relatively positive.

　　Li Hualin