China index reshuffle to entrench tech trades and boost AI rally: brokerages
Shanghai exchange revamp lifts tech weighting and adds chipmakers, signalling policy support and investor confidence
A semi-annual reshuffle of key gauges tracking China’s yuan-denominated stocks is set to boost the representation of technology companies, a move expected to lure more inflows and further increase the sector’s appeal, according to investment banks.
Domestic brokerages including Guosen Securities said the changes would inject more confidence into tech stocks, serving the national strategy and guiding resource allocations by underscoring the importance of the so-called new-quality productive force, a term coined by top policymakers.
The forecast came after the Shanghai Stock Exchange said it would add leading artificial intelligence chipmakers including Moore Threads Technology and MetaX Integrated Circuits to the Star Market 50 Index, a gauge of the biggest companies on the tech-heavy board, this month.
The bourse is also adding established tech companies to the Shanghai Stock Exchange 50 Index, a gauge of the 50 most valuable stocks on the main board, raising the weighting of new-economy stocks to 28 per cent.
