The share value of Contemporary Amperex Technology (CATL), the world’s biggest lithium-ion battery manufacturer, will see a boost from its inclusion next month in the CSI 300 Index, which tracks the nation’s largest onshore stocks, reports the South China Morning Post. CATL, which has a 50% share of the China market and 30% globally, is likely to join the gauge as part of its twice a year reshuffle, according to analysts at Shanghai-based brokerage Shenwan Hongyuan Group.
China Securities Index, the index compiler jointly owned by the Shanghai and Shenzhen exchanges, will announce the rebalance on December 13.
The inclusion may spur local and global fund managers into buying as much as RMB 12.9 billion ($2.02 billion) of the stock, which translates into about 1% of CATL’s current market capitalization, analysts Deng Hu and Sun Kaige wrote in a report on Monday. Passively managed funds that track the CSI 300 will probably allocate RMB 5.16 billion to CATL to mimic the composition of the benchmark, they added.