Brand dynamics

Group Real-Time Dynamics And Cutting-Edge Information In The Field Of One Health

Jiankangyuan Group & Lizhu Group may be included in the MSCI index

Published Time:

2019-05-29

MSCI, a globally renowned index compiler, announced early morning on March 1st, Beijing time, that it plans to significantly increase the weighting of Chinese A-shares through three major steps. Information from the Shanghai Securities News, Zhuhai Special Zone News, and the MSCI website indicates that Health and Joy Group and Lizhu Group are expected to be included in the MSCI China constituents.

Last year, MSCI (Morgan Stanley Capital International) included over 200 listed A-share companies into the MSCI index system, with an initial inclusion factor of 5%. At that time, only large-cap stocks were included, with the ChiNext board stocks completely absent.

 

 

Early morning on March 1st, MSCI announced that it would "expand" the MSCI China Index: increasing the inclusion factor for large-cap Chinese A-shares, including mid-cap stocks in the MSCI China Index, and agreeing to add the Shenzhen Stock Exchange's ChiNext market to the list of securities markets that meet MSCI index conditions.

The "expansion" will be carried out in three steps: In May, MSCI will increase the inclusion factor for large-cap Chinese A-shares from 5% to 10%, and simultaneously include large-cap ChiNext A-shares into the MSCI index system with a 10% inclusion factor; in August, MSCI will increase the inclusion factor for large-cap Chinese A-shares from 10% to 15%; in November, MSCI will finally increase the inclusion factor for large-cap Chinese A-shares from 15% to 20%, and simultaneously include mid-cap Chinese A-shares (including potential ChiNext indicators) into the MSCI index system with a 20% inclusion factor.

After the "three-step approach", the MSCI Emerging Markets Index is expected to include 253 large-cap Chinese A-shares and 168 mid-cap A-shares (including 27 ChiNext stocks), further increasing the weighting of A-shares in the MSCI Emerging Markets Index to 3.3%. Information disclosed on the MSCI website shows that the 168 potential constituents of the MSCI China Mid-Cap A-Share Index include Health and Joy Group and Lizhu Group.

Further Reading: "Inclusion in MSCI"

A-shares being included in MSCI means that A-shares are included in the MSCI index. The MSCI index is an index compiled by Morgan Stanley Capital International that tracks the performance of concept stocks. Its Chinese name is Ming Sheng Index. It is one of the most influential indices internationally, especially in emerging market countries.

The MSCI index is the most influential stock index globally and is also the benchmark index most frequently used by global portfolio managers. 97% of the world's top asset managers use the MSCI index as a benchmark.

MSCI's market position means that once a market is included in its index, it is likely to attract a large amount of capital.

MSCI announced today that it is increasing the weighting of Chinese A-shares in the MSCI index and will increase the inclusion factor of Chinese A-shares from 5% to 20% in three steps.

About Health and Joy Group

Joincare Pharmaceutical Group Industry Co., Ltd., formerly Shenzhen Tai Tai Health Food Co., Ltd., was founded in 1992 and established its leading position in the health product industry with "Tai Tai Oral Liquid". In 1997, it acquired Shenzhen Haibin Pharmaceutical Co., Ltd., successfully transforming from a health product company to a pharmaceutical company. In 2001, Tai Tai Pharmaceutical was listed on the Shanghai Stock Exchange, and in 2002, it successfully took controlling stake in Lizhu Pharmaceutical Group, the first A and B share listed company in China. After years of operation, Joincare Pharmaceutical Group has developed into a comprehensive group company integrating the research, development, production, sales, and service of health products and pharmaceuticals. It has more than 30 subsidiaries and over 10,000 employees. The group was renamed Joincare Pharmaceutical Group Industry Co., Ltd. in 2003. As of the end of 2017, the company's total assets reached RMB 22.21 billion, and its operating revenue reached approximately RMB 10.8 billion.

About Lizhu Pharmaceutical Group

Lizhu Group, which rose to fame with its gastrointestinal drug "Lizhu Dele," has made concerted efforts in multiple fields, including chemical drugs, traditional Chinese medicine, raw materials, microspheres, and diagnostic reagents. Its products cover digestion, cardiovascular and cerebrovascular diseases, anti-infection, anti-tumor, reproductive endocrinology, traditional Chinese medicine, and immunotherapy. In recent years, it has actively expanded into areas such as biomedicine and precision medicine. The company's research on Esomeprazole and Cistanche deserticola has successively won the second prize of the National Science and Technology Progress Award.

Original title: Major Good News! Lizhu Group May Be Included in MSCI