FTSE Russell list adjusted 3 shares newly listed! Foreign investors have been buying these stocks wildly recently

category:Finance
 FTSE Russell list adjusted 3 shares newly listed! Foreign investors have been buying these stocks wildly recently


Three shares are newly included in FTSE China A50 Index

FTSE Russell also announced that FTSE Chinas A50 Index was newly included in BYD, Luzhou Laojiao and Aier ophthalmology. According to wind data, as of December 2, the three stocks have gained 256%, 115% and 111% year-on-year respectively.

BYDs share price and performance reached a record high this year, with a market value of 442.2 billion yuan, which is the first car stock in the A-share market. According to its third quarter report, its net profit in the third quarter was 1.75 billion yuan, a year-on-year increase of 1362.66%. From January to September, the operating revenue was 105.023 billion yuan, with a year-on-year increase of 11.94%; and the net profit was 3.414 billion yuan, with a year-on-year increase of 116.83%. According to the latest disclosed data, the largest shareholder of BYD is Hong Kong Central Clearing (agent) Co., Ltd., with a shareholding ratio of 25.26%.

The current market value of Luzhou Laojiao is 269.4 billion yuan. In the high-end liquor market, Maotai, Wuliangye and Guojiao 1573 are the main products. According to its third quarter report, the company achieved a total revenue of 11.599 billion yuan in the first three quarters, a year-on-year increase of 1.06%, and a net profit of 4.815 billion yuan, a year-on-year increase of 26.88%.

At present, the market value of Aier ophthalmology is 264 billion yuan, realizing ten times in ten years. According to its third quarter report, the company achieved 8.565 billion yuan of operating revenue in the first three quarters, with a year-on-year growth of 10.78%; and a net profit of 1.546 billion yuan, a year-on-year increase of 25.60%.

In addition, the three deleted stocks, Poly Real estate, Zhifei biology and China Unicom, have increased by 13%, 159% and - 15% respectively since the beginning of the year.

Differences on the future flow of foreign capital

According to Wind data, as of the closing on December 2nd, the total net purchase of northward funds from the beginning of the year to the present is 163 billion 961 million yuan, while the net inflow of northward funds in 2019 is 351 billion 700 million yuan.

In the past month, the top five companies that BEIXIANG fund bought net include Gree Electric Appliance, Ping An of China, Longji shares, China immunity and Hengrui medicine; the companies that net sell the top five companies include Hikvision, Wuliangye, Yanghe shares, Haier Zhijia and China Life Insurance.

After accelerating the inflow of northward funds for four consecutive years, the pace of entry this year has slowed down significantly. However, there are some differences on the future direction of foreign investment.

Guosheng Securities believes that although the expansion of the international index will be postponed in the future, the trend of foreign capital inflow is expected to continue, maintaining the judgment of 200-300 billion foreign capital increment in the year. In the long run, the international capital allocation of A-share is still far from enough. Even if the external uncertainty increases, the logic of foreign capital entering the primary stage will not change at all.

YueKai Securities believes that although there is no plan to expand the A-share market by other international indexes, the enthusiasm of foreign investors to invest in a shares is still high this year; and compared with the proportion of foreign investors in South Korea and Taiwan, there is still a large space for foreign investors to increase their A-share holdings. The net purchase of a shares by foreign investors is still in the primary stage. With the opening of Chinas capital market to the outside world, the inflow trend of foreign capital in the medium and long term will not change in the future. According to its calculation, if the A shares are fully included in the MSCI, FTSE Russell and other international indexes within 5-8 years, foreign capital is expected to net flow into a shares of 2-4.5 trillion yuan, and the annual net inflow scale can reach at least 250 billion yuan. New era securities hold different views. Fan Jituo, chief securities strategist of the new era, believes that relatively speaking, insurance institutions and foreign investors pay more attention to valuation. This year, the scale of northward capital inflow has slowed down, mainly due to the rapid rise of valuation, which leads to the decline of cost performance. For example, ah premium index has risen from 120-130 last year to 140-150 at present. If the valuation of A-share continues to rise next year, it is not ruled out that the scale of foreign investment purchase will further decrease, or even become a small net outflow. However, taking into account the long-term value of RMB assets and the need for decentralized allocation of foreign capital, the scale of foreign capital outflow will not be very large. Source: Securities Times editor in charge: Yang Bin_ NF4368

New era securities hold different views. Fan Jituo, chief securities strategist of the new era, believes that relatively speaking, insurance institutions and foreign investors pay more attention to valuation. This year, the scale of northward capital inflow has slowed down, mainly due to the rapid rise of valuation, which leads to the decline of cost performance. For example, ah premium index has risen from 120-130 last year to 140-150 at present. If the valuation of A-share continues to rise next year, it is not ruled out that the scale of foreign investment purchase will further decrease, or even become a small net outflow. However, taking into account the long-term value of RMB assets and the need for decentralized allocation of foreign capital, the scale of foreign capital outflow will not be very large.