Since 2018, stocks A basically fell for a year, and all investors are looking forward to a good market in 2019. On the last day of 2018, the S & P Dow Jones Index, one of the world's largest financial markets index providers, officially announced the initial listing for A-shares. The Daily Economic News reporter noted that a total of 1,241 shares were listed.
The journalist noted that after a deep fall on the A-market in 2018, the value of the valuation was more pronounced, and more and more foreign and foreign institutions quickly increased the distribution of the A-share market, and these funds steadily entered the A-market. The market also accelerated the pace of internationalization of stock A.
Internationalization of A-Shares and a Second City
The Daily Economic News reporter noted that the 50 most valuable stocks included in the S & P Dow Jones Index Preliminary List include Kweichow Moutai, Ping An, China Merchants Bank, etc. Of which 19 are financial stocks. However, the index based on the S & P Dow Jones global indexes index will exclude shares A. Prior to making a decision to include A in other indices, further consultations will be made in the future.
The S & P Dow Jones Index company announced that it recognized the importance of China's global asset allocation and recorded deep changes in the Chinese market over the last few years, including the opening of Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect mechanism and the increase in foreign investment in China. Market Opportunities. Shares will be included in six indexes, including S & P BMI and Global Dow Jones index for 25% of inclusion factors: S & P Global BMI, S & P Global BMISharia, S & P / IFCI, Dow Jones Global Index, S & P Global Property and Dow Jones Islamic Markets.
It is important to note that the pace of the international allocation of share capital A accelerates. Following the listing of 226 A shares by the MSCI in June 2018, FTSE Russell followed the decision to include A-shares in the global index, and December 5, the S & P Dow Jones Index, one of the world's largest financial market index providers. It is officially announced that qualifying A-shares traded through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect will be included in the global index with new market classifications. Inclusion will take effect before the opening of the market 23 September 2019, and will be classified as "emerging". "Emerging Market".
S & P Dow Jones announced the inclusion of some A shares, which is another city for the internationalization of A shares. From the listing of A shares to the S & P Dow Jones index it is announced that A shares will be included in the index until December 31, when a list of A-shares, which lasts less than a month, will be published. In addition, data show that by the end of 2017 a total of 13.7 trillion US dollars followed the S & P Dow Jones index.
Foreign capital actively enters the A-market
The A-share market experienced a number of challenges in 2018. Continuous decline has made a valued advantage on the A-share market, all the more significant and with strong economic support from China, A shares become the focus of global capital. And foreign institutions are accelerating the distribution of A-markets.
The journalist noted that since the launch of Shanghai-Hong Kong Stock Connect, the cumulative inflow of funds to the north exceeded 600 billion yuan in the past four years. During this period, the A-share internationalization process continued to accelerate and Shenzhen-Hong Kong Stock Connect was launched and included in the MSCI Emerging Markets Index, which was established to be included in the FTSE Russell Index. In addition, the QFII and RQFII positions also include foreign capital. At the same time, the institutions that invested abroad have accelerated their entry into the Chinese market, and in 2018 16 foreign-funded institutions such as Fudalitai, Value Partners and BlackRock have completed the registration of the industrial funds association.
For foreign investors actively entering the A-share market, investment strategist BlackRock China Lu Wenjie said in an interview with journalist "Daily Economic News" that the risk of the A-share market is really high because the risks are too pronounced. Cheap. According to historical data, the total value of Shares A is currently in the historical area of the lower rails. A 20-year stock market A should be better in the overall order. From the investment perspective, the biggest source of confidence for China is its long-term growth potential. The Chinese economy is very large and its long-term growth potential is still present, which is a relatively unique understanding of international investors.
Luo Jing, a senior fund manager of Value Partners, told reporters in an interview that from the perspective of valuation, after a continuous adjustment in 2018, the PE and PB values of the major A-share indexes are at or near the lowest level since 2006. Global comparison, the valuation of the A-share market is also in a relatively low position. Therefore, the 20-year stock market is relatively optimistic.
Luo Jing told reporters that the inflow of foreign capital into shares A would be a long-term gradual trend. At present, international institutional investors still have a low price for A shares, and their A-share ratio does not match the A-share market value on the global market, and does not match the Chinese economy's position in global economic growth. As foreign capital corrects cognitive bias on the A-share market, the attractiveness of A-shares will increase, so the funds will continue to submerge shares A. At the same time, the inflow of foreign capital into shares A will further promote shares A to maintain a structured market.
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