China index rebalancing to trigger $48 billion in passive flows, Goldman Sachs estimates

Haier Smart Home Co

01/06/2026 02:05

SHANGHAI, June 1 (Reuters) - China's planned rebalancing of indexes is expected to trigger an estimated $48 billion in two-way passive investment flows, according to Goldman Sachs, as major indexes undergo semi-annual adjustments later this month. 
Beneficiaries from potential net inflows include Huagong Tech Co 000988.SZ, Yuanjie Semiconductor Technology Co 688498.SS and Hua Hong Semiconductor Ltd 688347.SS, the Wall Street bank said. 

     Here are some details:

     * The China Securities Index Co and the Shenzhen Securities Information Co announced the semi-annual index review results for key CSI and CNI indexes after the market close on Friday.
* Constituents of large-cap index CSI 300 .CSI300, mid-cap index CSI 500 .CSI500 and small-cap index CSI 1000 .CSI1000 will be adjusted at the close of trading on June 12, according to China Securities Index Co.
* Adjustments will also be made to indexes including the SSE 50 .SSE50, the SSE 180 .SSE180 and the STAR 50 .STAR50.
* The Shenzhen Securities Information Co said in a separate statement that constituents of the Shenzhen Component Index .SZI, ChiNext Index, Shenzhen 100 Index and ChiNext 50 Index will be adjusted on June 15. 
* "Overall, we expect the major CSI and CNI index rebalancing to generate over $48 billion in gross two-way passive flows," Goldman said in a note.
* Among the companies expected to benefit the most from passive inflows are GigaDevice 603986.SS, VeriSilicon 688521.SS, Piotech 688072.SS, and Zhejiang Century Huatong 002602.SZ, according to Goldman.
* On the other hand, stocks facing the largest passive outflows due to index deletions are expected to include Beijing-Shanghai High Speed Railway 601816.SS, Hengtong Optic-Electric Co 600487.SS, Shaanxi Coal 601225.SS  and Haier Smart Home Co 600690.SS, the bank said.
* The index adjustments will increase the representation of information technology, telecommunications and industrial companies. 
* China Securities Index Co said the changes are intended to better align the benchmarks with China's national development priorities and strategic industries.


 (Reporting by Shanghai newsroom; Editing by Sherry Jacob-Phillips)
 ((samuel.shen@thomsonreuters.com;  +86 21 20830018; Reuters Messaging: samuel.shen.thomsonreuters.com@reuters.net))