On June 2, FTSE Russell announced quarterly review changes to the FTSE China 50 Index, the FTSE China A50 Index and the FTSE China A150 Index, which will take effect after the close today (June 18).

XIAOMI Group, COSCO Shipping Holdings and CITIC Limited joined the FTSE China 50 index, while Geely Automobile, China Evergrande Group and New Oriental Education & Technology Group were excluded from the index.

The FTSE China 50 Index mainly reflects the performance of Chinese companies listed on the Hong Kong Stock Exchange. H shares, P shares and red chips are eligible to be included in the FTSE China 50 Index.

And FTSE Russell, which compiles this index, is the second largest index compiling company in the world, so the inclusion and elimination of this index have a certain impact on the company's stock price.

First of all, being able to be included in some international indexes means that it has been recognized by international capital, the company has good texture and development prospects, and it has core advantages in its industry and belongs to the industry leader; secondly, in terms of capital, "getting rich" means that a large number of international funds will be passively bought, which will promote the stock price of the company.

The so-called passive capital is that with the elimination or inclusion of constituent stocks, the weight of constituent stocks decreases or increases, which will lead to the adjustment of fund companies, resulting in the inflow and outflow of funds, and then affect the stock price.

According to China International Capital Corporation's research report, inCapital flow upwardAccording to the historical experience of index adjustment, passive funds usually choose to adjust their positions on the last day in order to minimize the tracking error of the index.As a result, we often see large changes in the weight of stocks traded."Abnormal"EnlargeEspecially in late trading.

He Nanye, a special researcher at the SUNING Institute of Finance, said that in the medium to long term, the entry of foreign capital will help improve trading activity and liquidity, further increase the investment proportion of foreign investors, and help promote enterprises to integrate with international standards.

China has taken the lead in recovering from the COVID-19 epidemic, the economy has stabilized rapidly, the RMB exchange rate has been rising, and Chinese assets are becoming more and more attractive to foreign investment.

Hao Xinming, manager of Fangxin Wealth Investment Fund, said that in the case of sufficient liquidity of the US dollar, the quarterly adjustment is expected to bring a lot of incremental funds, and the related concept stocks are domestic core assets with high investment value.