Core Insights - MSCI announced the results of its index review for November 2025, with adjustments effective after the market close on November 24 [1] - A total of 69 stocks were added to the MSCI Global Standard Index, while 64 stocks were removed [1] - The largest new additions to the MSCI Global Index by market capitalization include CoreWeave, Nebius Group, and Insmed [1] - The largest new additions to the MSCI Emerging Markets Index include Barito Renewables Energy, Zijin Mining International, and GF Securities H shares [1] China Market Updates - The MSCI China Index added 26 Chinese stocks and removed 20 [3] - New additions to the MSCI China Index include resource stocks and technology companies such as China Gold International, Zijin Mining International, and Ganfeng Lithium [3][5] - Stocks removed from the MSCI China Index include Haige Communications, Dong-E E-Jiao, and Hailan Home [3][5] A-Shares Adjustments - The MSCI China A-Shares Index added 17 stocks and removed 16 [7] - New additions to the MSCI China A-Shares Index include Qianli Technology, Dongyangguang, and Changchuan Technology [7] - The MSCI China A-Shares Onshore Index added 18 stocks and removed 24 [7][8] Fund Flow Implications - The adjustments in MSCI indices will lead to rebalancing in related index funds, resulting in increased capital allocation to newly added companies and forced selling of removed companies [9] - Historical trends indicate that passive funds tend to adjust their holdings on the last trading day to minimize tracking error, often leading to significant trading volume in affected stocks [9] - Active funds are not bound by this constraint and can choose their timing for allocation [9] Market Sentiment - Several foreign investment institutions have expressed positive views on the Chinese market, with Fidelity Fund favoring emerging markets over developed ones [9][10] - Despite mixed opinions on the Chinese stock market due to geopolitical risks and economic slowdown, there is recognition of the growth potential within the second-largest economy [10]

- The report predicts adjustments to the constituent stocks of the A500, CSI 300, and CSI 500 indices based on the index compilation rules published by China Securities Index Co., Ltd [9][10][15][17] - The A500 index selects 500 securities with large market capitalization and good liquidity from various industries, considering factors such as market cap size, industry representation, and consistency with the industry weight distribution of the sample space [10][11] - The CSI 300 index selects the top 300 stocks by average total market capitalization from the top 50% ranked by average daily trading volume, excluding ST and *ST stocks, and adheres to a 10% adjustment limit and a 20% buffer zone rule [15] - The CSI 500 index excludes CSI 300 constituent stocks and the top 300 stocks by average total market capitalization, then ranks the remaining stocks by average daily trading volume, removing the bottom 20%, and selects the top 500 stocks by average total market capitalization, following a 10% adjustment limit and a 20% buffer zone rule [17] - Historical analysis of index effects shows that adjustments to constituent stocks of indices like CSI 300, CSI 500, CSI 1000, and ChiNext Index have noticeable impacts on stock prices before and after the effective date of the adjustments [20][21][30][33][34]