CICC recently said that the announcement date of the composition adjustment of the Shanghai and Shenzhen 3 Index in June will be around June 3, and the implementation date will be around June 17. As many index funds need to allocate relevant stocks, June is a good buying opportunity for A-share investors, so they can wait for sedan chair.

The stocks that may be transferred are: PICC China, Wenshi, WANDA CINEMAS, Pengding Holdings and Qingdao Port. The stocks that may be transferred out are: Datang Power Generation, China Merchants Highway, Xiamen Tungsten Industry, Sophia and *ST Salt Lake.

buying opportunity of a 7% outperforming index

CICC also backtested 28 composition adjustments since the publication of the CSI 3 Index, and investigated the performance of the actual transferred/transferred stocks relative to the broader market (represented by the CSI 3 Index) before and after the announcement date and the implementation date, and found that there was a big buying profit opportunity in a period of time:

from the announcement date to the implementation date: the average daily excess return of the transferred stocks relative to the CSI 3 was .9%.

the average daily excess return of the transferred stocks relative to the CSI 3 is -.21%, and the cumulative probability of underperformance index is 86%.

According to the historical analysis, there is a demand for capital allocation in the transferred stocks, so there is a certain expectation of rising; The transferred stocks will be thrown out by allocation funds. It is expected that Wen's shares, Lujiazui, Oceanwide Holdings and Jinke shares will have a large inflow of funds at that time.

In addition, FTSE Russell, the world's second largest index company, will also accelerate the process of being included in A-shares, and its list of shares included in the first step of the first phase of A-shares will be confirmed on May 24th and take effect on June 24th.

according to the plan announced by FTSE Russell, the A-share listing will be divided into three steps: 2% in June 219, 4% in September 219 and 4% in March 22. Covers large, medium and small stocks.