Zheng Quan Shi Bao Wang·2025-12-04 05:30Core Viewpoint - FTSE Russell announced changes to several indices, including the FTSE China 50 Index, FTSE China A50 Index, FTSE China A150 Index, FTSE China A200 Index, and FTSE China A400 Index, effective after the market close on December 19, 2025 [1]. Group 1: Index Adjustments - The FTSE China A50 Index will include Luoyang Molybdenum (603993) and Sungrow Power Supply (300274), while removing Jiangsu Bank (600919) and SF Holding (002352) [4][6]. - The FTSE China 50 Index will add China Hongqiao, CATL (300750), and Hengrui Medicine (600276), while excluding CITIC Securities (601066), Great Wall Motors (601633), and Li Auto [6][8]. - The FTSE China A150 Index will incorporate Ying Shi Innovation, Jiangsu Bank, Huadian New Energy, SF Holding, Jiangbolong, and Huayou Cobalt (603799), while removing Luoyang Molybdenum, Desay SV (002920), Changdian Technology (600584), Baoxin Software (600845), Shanghai Pharmaceuticals (601607), and Sungrow Power Supply [10][12]. - The FTSE China A200 Index will add Ying Shi Innovation, Huadian New Energy, Jiangbolong, and Huayou Cobalt, while excluding Desay SV, Changdian Technology, Baoxin Software, and Shanghai Pharmaceuticals [12]. - The FTSE China A400 Index will see a broader adjustment, adding Anji Technology (688019), Baiyin Nonferrous (601212), Yitang Co., and Bluefocus Communication Group (300058), while removing Chipbond Technology, Yipin Hong (300723), Guanghui Network (300383), and Huaxi Biological [13][14]. Group 2: Market Impact - The adjustments by FTSE Russell are expected to attract passive fund allocations to the newly included stocks and increase overseas interest in Chinese assets [17]. - In the first ten months of 2025, foreign capital inflow into the Chinese stock market reached $50.6 billion, significantly surpassing the total of $11.4 billion for the entire year of 2024, marking an increase of over three times [17]. - UBS forecasts that A-share market earnings growth will rise from 6% this year to 8% next year, driven by improved nominal GDP growth and a narrowing of PPI declines [17]. - JPMorgan upgraded its rating on Chinese stocks to "overweight," citing a higher likelihood of significant gains next year compared to potential downside risks [18]. - Morgan Stanley set a target for the CSI 300 Index at 4840 points by December 2026, indicating a stable outlook for Chinese stocks amid moderate earnings growth and higher valuation levels [18].