Foreign stock allocation is still accelerating! FTSE Russell's latest catalog announced (full list attached)

China's leading financial data, information and software services company, headquartered in Shanghai Lujiazui Financial Center.

(Photo from Heluo) The international index has accelerated the listing of a shares, and the allocation of foreign capital has accelerated. On the evening of March 4, Beijing time, FTSE Russell, the world's second largest index company, announced the FTSE China A50 Index, FTSE China A150 Index, FTSE China A200 Index, FTSE China A400 Index and FTSE China. The small cap index is evaluated on a quarterly basis. The change will take effect after the trading day ends on Friday, March 20 (Monday, March 23). In other words, the inflow of passive funds will be fully in place when the market closes on Friday, March 20. According to previous official estimates by FTSE Russell, the expansion is expected to bring in passive capital inflows of $ 4 billion. On February 21, FTSE Russell announced that the inclusion factor of China's a-shares will be increased from 15% to 25%, so that 88 new Chinese a-shares will join FTSE GEIS. FTSE Russell Asia Pacific Managing Director Bai Meilan and Asia Pacific Index Managing Director Du Wanming said that more China-related indexes may be launched in the future. As international index cards accelerate their integration into A-shares, more foreign capital will be driven to increase research and investment allocation for A-shares. The following are details of the changes in the quarterly review of the FTSE China A50 Index, FTSE China A150 Index, FTSE China A200 Index, FTSE China A400 Index and FTSE China Small Cap Index. FTSE China A50 IndexThe FTSE China A50 Index will include CITIC Construction Investment, BOE A shares, ZTE and Weir stocks, but not including China Merchants Shekou, Shanghai Airport, Xinhua Insurance and Shanghai Port Group. FTSE China A150 IndexThe FTSE China A150 Index will include 18 stocks, such as Sanhe Zhikong, Beihuachuang, Dongshan Precision, Ophelia and Ganfeng Lithium, while 17 stocks, such as Cologne Pharmaceutical, Mackay Dragon, CITIC Construction Investment and Lanqi Technology will be deleted. FTSE China A200 Index The FTSE China A200 Index will include 14 stocks, such as China PICC, China Guanghe, Sanxi Interactive Entertainment, Beihuachuang and China Satellite Communications, but not including 14 stocks, such as Rongsheng Development, Hengyi Petrochemical, North Rare Earth, East China Medicine and Laurel Power. FTSE China A400 IndexThe FTSE China A400 Index will include 45 stocks, such as Tongfu Micro Power, Rongsheng Development, Hengyi Petrochemical, Northern Rare Earth and East China Pharmaceuticals, while 45 stocks, such as Sanqi Mutual Entertainment, Northern China Chuang , China Satcom, Ganfeng Lithium and Inspur information will be deleted. FTSE China Small Cap Index The FTSE China Small Cap Index will include 176 stocks, such as Wing Tai Energy, Ogilvy Medical, radio and television metering, western construction, British Jia Gong wine and so on. And 67 stocks such as CITIC Special Steel, Tongfu Micro Power, Shenzhen Stock Exchange Technology, Fang Jing Technology and Leo will be deleted. Foreign investment or accelerated a-share listing With the accelerated listing of a-shares in international index certificates, more foreign investment will be driven to increase the research and investment distribution of a-shares. (Image source: Shanghai Wind Financial Building-Shenzhen-Hong Kong Express Line) Although affected by the global spread of the epidemic in the short term, the current prudent approach is to go northward, but the overall situation is increasing year by year. Wind energy statistics show that as of March 4, the net inflow of the a-share market this month was 3.852 billion yuan, this year's net inflow was 53.827 billion yuan, and the net inflow since the market opened was 10.473.04 billion yuan. In addition, CICC estimates that the average annual net flow of foreign capital inflow into a shares in the next 10 years may be between 200 billion and 400 billion yuan. Vanderbilt's turnover recently fell below 1 trillion yuan for the first time. On March 4, the Shanghai and Shenzhen stock markets rose slightly. As of that date, the Shanghai Composite Index rose 0.63% to close at 3011.67 points. The Shenzhen Composite Index rose 0.08% to close at 11,493.02 points. The GEM market fell by 0.18% to 2169.44 points, and Vanderbilt's a-share transaction exceeded 980 billion yuan. On the same day, Vanderbilt's turnover was 986.6 billion yuan. After exceeding 1 trillion yuan for 10 consecutive days, it fell below 1 trillion yuan for the first time. (Image Source: Wind financial terminal "Shanghai-Shenzhen composite screen") In fact, "fast bull slow bear" is an important feature of a shares. Many investors are irrational in a bull market, and transactions exceeding 1 trillion yuan are not a healthy market. The market has its own rules and needs to be relaxed. Although the transaction volume this time is less than 1 trillion yuan, it is still at a relatively high level, which indicates that the market is still at a relatively high level. Undervalued sectors are sought after. From the ups and downs of the plate

From the perspective of the falling sector, semiconductors fell 3.22%, the largest decline. In addition, electronic components, communications equipment, software and other sectors are at the forefront of the decline. For this type of sector, there has been a huge increase in the previous period, and many stocks in the sector are trading at hundreds or even thousands of times. As a leader in the semiconductor industry, since August last year, the high-level callback rate of Zhao Yi Innovation, a technology leader, has reached 250%, with the highest increase exceeding 300%. Although the stock price has fallen recently, the absolute increase is still relatively large. In addition, the company's dynamic P / E ratio is as high as 200 times, and there is a risk of overvaluation in the short term. On March 4, the company's stock price fell for a period of time and then closed at 8.14%. Shanghai Xinyang and Jacques Technologies, which are located in the same semiconductor sector, also suffered intraday declines on March 4 and have increased by more than 100% since December last year. They also face the risk of substantial short-term gains and high valuations. The net outflow of the information technology sector exceeded 40 billion yuan. From March 2nd to 4th, the cumulative net outflow of major capital flows in the industry exceeded 40 billion yuan, of which the information technology industry outflow exceeded 40 billion yuan, ranking first in the industry outflow, significantly exceeding other industries. In addition, capital inflows from industries such as finance, daily consumption, and real estate are small. Judging from the current overall information technology valuation, it has exceeded 100 times, exceeded the dangerous value, and is close to the peak of the bull market in 2015. Although high valuation and high growth coexist in the high-tech field, this does not rule out the market risks brought by the excessive expansion of growth space and the excessive speculation of some fake technology stocks in the next few years. Looking back at the internationalization of A shares in 2019, it can be said that the internationalization of A shares has landed in an orderly manner, completed the three-step expansion of the Morgan Stanley Capital International Index, and was included in the FTSE Russell and S & P Dow Jones Indexes for the first time. As the epidemic spreads and market uncertainty increases, Chinese assets are becoming a favorite target for Wall Street. Market participants predict that the road to internationalization of A shares will become wider and wider. The wind user enters 943 (the state-of-the-art stock networking leaderboard) in the financial terminal, and customizes the full-screen monitoring of the state-owned stock networking funds layout. Goldman Sachs, JP Morgan Chase, and Citigroup each introduced their latest positions. Hundreds of large banks, including international, Hong Kong, Taiwan, and mainland China, from an international perspective, completely covered A-share companies with higher investment value.