According to Open Source Securities analysis, the specific conditions proposed by various indexes for BSE symbols are mainly focused on the listing time, and 25 stocks may be selected for the CSI 2000 and CNI 2000 indexes in the future.
The North Exchange market quotes are back!
After rebounding to 700 points on Tuesday, the CSI 50 Index continued to rise on Wednesday, soaring over 6% in early trading. Its constituent stocks were all in red, and more than 10 stocks rose more than 20% at one point. In the afternoon, the CSI 50 Index continued its upward trend, with a gain of 7.2% at the close. Analysts believe that part of this round of growth is influenced by the US stock market style (the Russell 2000 index has surged for several consecutive days), frequent pre-profit warnings in the semi-annual report, attract bargain-hunting capital, and the inclusion of North Exchange stocks in multiple A-share all-market indices, which has brought great vitality to North Exchange stocks.
According to analysis, part of this round of rise is due to the reflection of the US stock market style (the Russell 2000 index has surged for several consecutive days), frequent pre-profit warnings in the semi-annual report, and attract bargain-hunting capital due to the relatively low valuation. In addition, the inclusion of North Exchange stocks in multiple A-share all-market indices has brought great vitality to North Exchange stocks. As of July 10th, North Exchange stocks have been included in multiple all-market indices. Through regular constituent adjustments, high-quality listed securities of the North Exchange are also continuously included in the constituent index. This has brought a certain amount of incremental funds to corresponding weighted North Exchange stocks.
As of July 10th, North Exchange stocks have been included in multiple all-market indices. Through regular constituent adjustments, high-quality listed securities of the North Exchange are also continuously included in the constituent index. This has brought a certain amount of incremental funds to corresponding weighted North Exchange stocks.
So, which North Exchange stocks are eligible for inclusion in the all-market indices?
North Exchange component stocks have been selected for multiple all-market indices.
According to the report of Kaiyuan Securities, as of July 10th, the underlying assets of the North Exchange have been included in multiple all-market indices.
The underlying assets of the North Exchange in the CSI All Share Index reached 87, with a total weight of 0.153%; in the CSI Free Float Index, 206 with a total weight of 0.299%; in the CNI A Share Index, 202 with a total weight of 0.287%; 7 in the CNI 2000 Index, with a total weight of 0.262%; Betta Pharmaceuticals had a weight of 0.0219% in the CNI 1000 Index; and Betta Pharmaceuticals was one of the constituent companies in the CSI Environmental Protection Industry Index, with a weight of 0.315%.
Betta Pharmaceuticals has been included in 5 indices, namely the CSI All Share Index (weight of 0.018%), the CSI Free Float Index (weight of 0.018%), the CNI A Share Index (weight of 0.0158%), the CNI 1000 Index (weight of 0.0219%), and the CSI Environmental Protection Industry Index (weight of 0.315%). As one of the oldest listed securities in the North Exchange, Betta Pharmaceuticals has the highest market capitalization of 19.162 billion yuan and the second-highest free float market capitalization of 4.721 billion yuan. From an operating perspective, the company achieved revenue of 25.119 billion yuan and net income attributable to the parent of 1.654 billion yuan in 2023, taking a leading position in the North Exchange as a typical listed security with a long listing time and large size. Kaiyuan Securities pointed out that by referring to the constituent adjustment of the CNI 2000 and the CSI All Share Index, high-quality listed securities with a later listing date are continuously included in the constituent index through regular constituent adjustments.
Betta Pharmaceuticals has been included in 5 indices, namely the CSI All Share Index (weight of 0.018%), the CSI Free Float Index (weight of 0.018%), the CNI A Share Index (weight of 0.0158%), the CNI 1000 Index (weight of 0.0219%), and the CSI Environmental Protection Industry Index (weight of 0.315%). As one of the oldest listed securities in the North Exchange, Betta Pharmaceuticals has the highest market capitalization of 19.162 billion yuan and the second-highest free float market capitalization of 4.721 billion yuan. From an operating perspective, the company achieved revenue of 25.119 billion yuan and net income attributable to the parent of 1.654 billion yuan in 2023, taking a leading position in the North Exchange as a typical listed security with a long listing time and large size.
Kaiyuan Securities pointed out that by referring to the constituent adjustment of the CNI 2000 and the CSI All Share Index, high-quality listed securities with a later listing date are continuously included in the constituent index through regular constituent adjustments.
What kind of stocks are eligible for inclusion in the all-market indices?
Kaiyuan Securities' research report pointed out that from the perspective of the index sample space, the targeted conditions of various indices for North Exchange constituents are concentrated in the listing time. The CSI All Share Index, the CSI Free Float Index, and the CNI A Share Index are broad-based indices that reflect the overall performance of the A-share market, so their sample space for North Exchange constituents is larger. The screening conditions for North Exchange constituents in the CSI All Share Index are "Science and Technology Innovation Board securities and North Exchange securities: with listing time exceeding one year and two years respectively", while the CSI Free Float Index is "A-shares and H-shares issued by Shanghai, Shenzhen, and the North Terminal exchanges and their depository receipts. Excluding securities that have not completed equity distribution reform, ST, and *ST." The sample space for the CNI A Share Index is "The sample selection space for the CNI A-share index includes all A-shares listed on the Shanghai, Shenzhen, and North exchanges, except for ST and *ST securities."
The CNI 2000 Index, the CNI 1000 Index, and the CSI Environmental Protection Industry Index have more refined requirements for North Exchange constituents. The corresponding sample range of the CNI 2000 is "Science and Technology Innovation Board securities and North Exchange securities have been listed for more than 1 year; other securities have been listed for more than 6 months"; the CNI 1000 is "Science and Technology Innovation Board securities and North Exchange securities have been listed for more than 1 year; other securities have been listed for more than 6 months and are ranked in the top 1% by market value are excluded."; the sample space of the CSI Environmental Protection Industry Index is the same as that of the CSI All Share Index, focusing more on the industry to which the company belongs and the market capitalization and does not present targeted screening conditions for the North Exchange.
Kaiyuan Securities' research report pointed out that from the perspective of the index sample space, the targeted conditions of various indices for North Exchange constituents are concentrated in the listing time. The CSI All Share Index, the CSI Free Float Index, and the CNI A Share Index are broad-based indices that reflect the overall performance of the A-share market, so their sample space for North Exchange constituents is larger. The screening conditions for North Exchange constituents in the CSI All Share Index are "Science and Technology Innovation Board securities and North Exchange securities: with listing time exceeding one year and two years respectively", while the CSI Free Float Index is "A-shares and H-shares issued by Shanghai, Shenzhen, and the North Terminal exchanges and their depository receipts. Excluding securities that have not completed equity distribution reform, ST, and *ST." The sample space for the CNI A Share Index is "The sample selection space for the CNI A-share index includes all A-shares listed on the Shanghai, Shenzhen, and North exchanges, except for ST and *ST securities."
CSI All Share Index will include 22 symbols from June 17, 2024. All of them are high-growth quality symbols listed between November 2021 and April 2022, including such symbols as Claytech, Guangmai Technology, Luss Stock and others.
Which symbols have the potential to be selected?
In addition, 12 symbols may be selected for the CNI 2000 index.
