China’s major stock exchanges are overhauling their benchmark indices to add domestic artificial intelligence and semiconductor companies while phasing out traditional consumer electronics manufacturers, reports Caixin.
The semi-annual rebalancing, effective June 15, impacts more than a dozen key gauges including the CSI 300, SSE 50, and STAR 50. Passive funds are already injecting hundreds of millions of dollars into newly selected computing and memory chip stocks during the two-week trading window before the changes take effect.
The changes are strictly rule-based, prioritizing daily average market capitalization and liquidity over the past year. Driven by a surge in listed tech firms and active trading, domestic computing infrastructure providers—spanning graphics processing units (GPUs), optical modules, and memory chips—are replacing older telecommunications and hardware assets. Consequently, companies like Goertek, Yealink Network Technology and Fiberhome Telecommunication Technologies are being removed from mainstream indices.