on the evening of february 21st, ftse russell announced the quarterly adjustment results of its flagship index for february 2020. after this adjustment, sanxiang impression (000863) has become one of small-cap a-shares of the ftse global equity index series (“ftse geis”). the adjustment will take effect before the opening time on march 23, 2020.
ftse russell is the second largest indexing company in the world. chuancai securities previously stated in a research report that, the funds following ftse geis total about 1.7 trillion usd, according to ftse russell’s official data.
(source: ftse russell’s website)
in the plan announced by ftse russell, in this adjustment, 88 chinese a-shares, including 10 large-cap a-shares, 7 medium-cap a-shares, 67 small-cap a-shares, and 4 micro-cap a-shares have been included in the index. in addition, several a-share subjects previously included have been adjusted based on market value categorization. after the capacity expansion, the institutional investors following the ftse geis will be correspondingly allocated with the newly included 88 chinese a-shares. therefore, according to ftse russell’s official estimates, the expansion will bring passive incremental funds of 4 billion usd to a-shares and re-enhance the confidence in these a–shares.
in a previous media interview, mr. mark makepeace, the ceo of ftse russell, said that ftse russell’s top screening standard is size. ftse russell will consider the indices of all large, medium, and small-cap shares when screening chinese a-shares, and the stocks will be removed if their size is too small. the second standard is liquidity, and those stocks with poor liquidity will not be considered. the third standard is that the relevant subject should not have any record of active suspensions over the past year.
the listing of the company on the ftse geis indicates the company will receive more attention from international investors. the institutional investors following the ftse geis will be proportionally allocated with their stock in the company.
in 2019, the company successfully turned losses into profits. it is estimated that the net profit attributable to the listed company’s shareholders will be rmb 278 million , and that the epa will be rmb 0.20 , which is significant growth compared to the same period in 2018. in the future, the company will further optimize its business structure, enhance its ability to mitigate risks, fully explore the synergistic development of its two major sectors, “culture real estate”, and keep driving the steady growth of its business while further realizing a satisfying roi in the long term.