On February 21 Beijing time, the international index titan FTSE Russell released quarterly results for its flagship index in February 2020. This quarterly adjustment will lift the inclusion factor of Chinese A-shares from 15% to 25% as scheduled. Infore Enviro (stock symbol: 000967) is on the list.
The announcement observes 88 Chinese A-shares to join the FTSE GEIS, including ten big-cap A-shares, seven mid-cap A-shares, 67 small-cap A-shares, and four micro-cap A-shares. The underlying valuation of some previously included A-shares has also been adjusted by sorts. The above changes will kick in before the opening on March 23.
By far, FTSE Russell has completed the first phase of its A-share inclusion program. According to official information, FTSE Russell conducted in three tranches: 20%, 40% and 40% in June and September 2019 and March 2020. After these three tranches, the inclusion of Chinese A-shares will represent 25% of the investability weight. This quarterly adjustment in February will lift the inclusion factor of Chinese A-shares from 15% to 25%.
This inclusion is expected to bring $4 billion of passive incremental capital into A-shares, according to FTSE Russell. Sinolink Securities Strategy Team expects this inclusion to bring around 28 billion Yuan of passive incremental capital. To ensure there is sufficient liquidity in both the stock and money markets around the holiday period, the third tranche is delayed from December 2019 until March 2020. FTSE Russell said that the third tranche scheduled in March 2020 will not be hindered by the epidemic, but stay on track.
The inclusion of Infore Enviro in the FTSE GEIS signifies that Infore Enviro has grown from a listed company into a representative, high-growth industry leader recognized among international investors, and up to standards of international investment institutions in all aspects.
Recent years have witnessed the outstanding performance of Infore Enviro in environmental segments such as sanitation equipment, environmental monitoring, solid waste treatment, and sanitation integration. In addition to continuously focusing on the main business of environmental protection, Infore Enviro has vigorously developed intelligent, unmanned sanitation equipment and sanitation services. The newly launched smart small environmental sanitation robotics package for urban capillary cleaning mixes technologies including 5G, AI, machine vision, full-scene image recognition, and green new energy power. It has broken the traditional “human-oriented, equipment-supplemented” model, pertinently addressed the industry pain point, and sped up the integration of ecological, social and economic benefits, greatly advancing the development of the shared green economy.