FTSE Russell announced at 7:30 on the 27th whether it will be included in the A-share market. The SSE will hold a press conference.

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FTSE Russell announced at 7:30 on the 27th whether it will be included in the A-share market. The SSE will hold a press conference.

2018-09-25 20:25:05 79 ℃
Introduction: The First Financial Reporter learned from the world's second largest index company, FTSE, that it will officially announce whether China A shares will be included in its index system on the morning of September 27 (Thursday). And the classification of A shares should be Secondary Emerging. In the afternoon, FTSE Russell will hold a press conference at the trading floor of the SSE.

Financial headline: A-share "into the rich" countdown

A financial reporter learned from the world's second largest index company, FTSE, that it will officially announce whether China A shares will be included in its index system on the morning of September 27 (Thursday). And the classification of A shares should be Secondary Emerging.

"We will announce the time after the closing of the US stock market on the 26th of the US East Time. The specific time is 19:30 EST, which is 7:30 am Beijing time on the 27th. Emerging '.' FTSE Russell's exclusive response to the First Financial Reporter, may also announce the inclusion of Iceland in the Frontier, possibly reclassifying Romania from the current frontier to secondary emerging.

People close to the SSE also told reporters that FTSE Russell will hold a press conference at the trading floor of the SSE in the afternoon, when FTSE Russell CEO Mark Makepeace and the CSRC leadership And some institutional customer representatives will also be present. Some Chinese-funded institutions also told the First Financial Reporter that according to the scale of the 27th press conference, the possibility of inclusion is relatively large. At that time, if the A-share is announced, FTSE Russell will also announce the specific inclusion factors, the time of official entry into force, and how to transition.

"However, if the results of the inclusion are announced, with reference to MSCI's practice, the official entry into force of FTSE Russell's inclusion of A shares is one year after the results are announced, at which time there will be capital inflows. In addition, Fuji Russell may also further discuss the classification of its bond index and prepare the Chinese bond market to include the global bond index," said the source.

In 2002, FTSE merged the small cap index and launched the FTSE Global Equity Index Series (GEIS), which expanded the ratio of global markets to 98%, and the countries in the index were classified as “developed”. , "advanced emerging" and "emerging" markets.

The Securities Regulatory Commission has previously expressed its active support for the A-share inclusion in the FTSE Russell International Index. According to brokerage statistics, if mainland China A shares are included in the FTSE Russell Index, according to the current size of the index of about 1.5 trillion US dollars, theoretically expected to bring more than 500 billion US dollars in incremental funds for A shares.

"We think the possibility of this inclusion is relatively large," said Fabiana senior fund manager Fabiana Fedeli, who recently told the First Financial Reporter, "and as China's regulatory authorities continue to In the open financial market, MSCI and FTSE Russell will inevitably increase the proportion of A-shares. Of course, this also requires Chinese regulators to continuously improve the supervision of the A-share market, especially to improve information disclosure and prevent random stocks. Suspension."

On May 26, 2015, FTSE Russell announced that it will launch a transition plan to include China A-Shares in the FTSE Global Equity Index System. At that time, it designed a corresponding temporary transition index for A shares. Until September 2017, FTSE Russell evaluated the A-shares, but due to the lack of capital liquidity and liquidation, the A-shares could not be included.

Towards the current investment opportunities in terms of foreign investment in the Chinese market, during the recent 2018 Summer Davos, Zhu Yue, the head of China’s largest equity investment firm BlackRock China, accepted In an exclusive interview with the First Financial Journal, the foreign investment has the momentum to continue to increase the allocation of A-shares. This trend will not be reversed due to short-term cyclical fluctuations. As far as the sector allocation is concerned, Zhu Yue said that foreign capital is still “following profits.” Recently, the profits of the upstream industry have increased significantly, and the earnings outlook of banks and other financial sectors remains stable. Even the consumer sector, which is considered by all sectors to be favored by foreign capital, needs to be further differentiated according to the profit.

Lu Jie, Director of China Research at Equus Asia Pacific, told the First Financial Reporter, “We feel that although the valuation has been lowered to a low point, the short-term volatility will still be relatively large. Due to external and internal policies Uncertainty, the strategy is still based on stock selection, based on the current valuation, some stocks have long-term investment value. The sector is more optimistic about the mandatory consumption, optional consumption may have some pressure, need to look at the stimulation of consumer policies.

Editor: Roth Young