Being kicked out of FTSE a50 is a good thing. You can see the A50 index market.

1. Before 2010, the FTSE China A50 Index was called the Xinhua FTSE China A50 Index, referred to as the A50 Index. It was compiled and listed on the Singapore Exchange (SGX) in 1999 by FTSE Index Co., Ltd. (now known as FTSE Russell Index), one of the four major index companies in the world, to meet the needs of Chinese domestic investors and qualified foreign institutional investors ( A real-time tradable index launched by QFII) demand. We all should be familiar with this compilation company, FTSE Russell. The China A50 Index includes the 50 companies with the largest market capitalization in China's A-share market, and its total market capitalization accounts for 33% of the total market capitalization of A-shares. The A50 Index is also the only index that international investment institutions can use to directly invest in Chinese stocks overseas. It is the index that best represents China's A-share market. Many domestic and foreign investors regard this index as an accurate indicator of the Chinese market.

2. It is easy to judge the trend, rising and falling at the same time as the CSI 300: Because the 50 constituent stocks of the China A50 Index are all 50 heavyweight stocks in A-shares, and they all have market capitalization in the Chinese A-share market. The top 50 largest companies, such as Moutai, Ping An, ICBC, Sinopec, etc., have a total market value of 33% of the total A-share market value, and a circulating market value of 46.6%. Most of these 50 stocks are financial stocks, such as brokerage, banking and insurance stocks. , and our A-share market is largely affected by these heavyweight large-cap stocks, so the A50 index and the A-share market rise and fall at the same time. That is, doing the A50 index is equivalent to doing the market. Therefore, some people also say It is the "Broad Market Index".

1. Constituent stocks that are included in the FTSE China A50 generally have three characteristics. The first thing to consider is size. Generally, stocks that are too small will not be considered; secondly, liquidity. Stocks with poor liquidity will not be selected; finally, it is required that the relevant underlying assets must not have a history of active trading suspension in the past year. For example, in June 2019, Han's Laser and Midea Group were not included in the FTSE GEIS index because they were bought out by foreign investors and had insufficient liquidity. There was almost no quota for foreign investors to purchase them.

2. Then, we can consider and analyze the reasons why China Unicom was kicked out of the FTSE China A50 Index from these aspects. The FTSE China A50 Index includes the 50 companies with the largest market capitalization in China's A-share market, but China Unicom's current market capitalization is only 152.6 billion yuan. Moreover, telecommunications companies like China Unicom have very average capital returns, or even declining. In the past, when the Internet was not developed enough, China Unicom and China Mobile relied on their main businesses of text messages and local and long-distance call charges. It can still maintain a certain performance. With the in-depth development of the Internet and the rise of WeChat, it has basically eroded all the profits of the main business of telecommunications. Now the telecommunications industry can only survive by charging network usage fees.