On May 12, the internationally renowned index provider MSCI announced the results of its May 2021 index quarterly adjustment, which will take effect after the market closes on May 27, 2021 (tomorrow).
Based on historical experience, MSCI's current adjustment may once again trigger changes in northbound funds.
Which stocks will be adjusted in the index components?
1. MSCI Global Standard Index
In this adjustment, MSCI Global Standard Index added 109 new stocks, including 39 A-share stocks, and removed 96 stocks, including 19 A-share stocks.
It is worth noting that CanSino Biologics Inc.-U, China Railway Signal & Communication Corporation, Montage Technology, Zhejiang HangKe Technology Incorporated, and Raytron Technology, these 5 Star Market stocks are newly included in this session, marking the first time Star Market stocks have entered the MSCI flagship index series.
 
Second, the MSCI China A-shares onshore index (with relatively less overseas funds compared to this index).
 
In the MSCI A-shares onshore index adjustment, 26 A-shares will be added, and 77 A-shares will be removed.
In addition, the MSCI China All Stocks Index will add 60 individual stocks and remove 26 stocks. In terms of total market value, the three largest new stocks are GANFENGLITHIUM, Ningxia Baofeng Energy Group, and PHARMARON.
 
In other index aspects, the MSCI China A-shares onshore small-cap index added 200 new stocks and removed 213 stocks, while the MSCI China All Shares Small Cap Index added 195 new stocks and removed 275 stocks.
 
After the adjustment, the number of constituents in the MSCI China Index increased from 709 to 748...