<div id="readability-page-1" class="page"><div><figure></figure>China’s upcoming index rebalancing is expected to trigger more than $48 billion in gross two-way passive flows, according to Goldman Sachs, setting up a wave of mechanical buying and selling across some of the country’s biggest onshore benchmarks.The semi-annual changes affect major CSI and CNI indexes and will be implemented in mid-June.Constituents of the CSI 300, CSI 500 and CSI 1000 will be adjusted at the close of trading on 12 June, while Shenzhen-linked gauges including the Shenzhen Component Index, ChiNext Index, Shenzhen 100 Index and ChiNext 50 Index will be adjusted on 15 June.The reshuffle will also cover indexes including the SSE 50, SSE 180 and STAR 50.For investors, the changes matter because passive funds that track these benchmarks typically rebalance portfolios around implementation dates, creating concentrated trading flows in stocks being added, removed or reweighted.Tech exposure is set to riseThe latest changes will increase the representation of information technology, telecommunications and industrial companies, according to China Securities Index Co.That shift aligns the benchmarks more closely with China’s national development priorities and strategic industries.The tilt is significant because Chinese equity benchmarks are increasingly being reshaped by policy-linked sectors, from semiconductors and advanced manufacturing to communications infrastructure and other technology-related industries.For global investors, the rebalancing offers a clearer view of where index providers expect China’s listed market structure to move.It also highlights how national industrial policy is filtering into benchmark composition, potentially affecting passive allocations long after the June trading flows have passed.Goldman sees major two-way flowsGoldman Sachs estimates the CSI and CNI changes will generate more than $48 billion in gross two-way passive flows.That figure captures both expected buying and selling, rather than a net inflow into the market.The largest expected passive inflows are tied to companies added to or gaining weight in key benchmarks. Goldman identified Huagong Tech, Yuanjie Semiconductor Technology and Hua Hong Semiconductor as potential beneficiaries of net inflows.The bank also flagged GigaDevice, VeriSilicon, Piotech and Zhejiang Century Huatong among stocks expected to receive passive buying support.These names broadly fit the rebalancing’s increased exposure to technology and strategic industries.Outflows may hit legacy namesThe reshuffle is also expected to create selling pressure in stocks being removed from benchmarks or losing index weight.Goldman said Beijing-Shanghai High Speed Railway, Hengtong Optic-Electric, Shaanxi Coal and Haier Smart Home are among companies expected to see some of the largest passive outflows linked to index deletions.Such moves do not necessarily reflect a negative fundamental view of the companies. Instead, they show how benchmark methodology can force passive investors to sell stocks when constituents are removed or weights are reduced.Rebalance puts liquidity in focusIndex rebalances often produce predictable trading patterns, but they can still move individual shares sharply when passive assets are large and implementation windows are concentrated.For active investors, the June timetable creates an opportunity to monitor liquidity, positioning and possible price dislocations around stocks with the largest expected inflows and outflows.For passive funds, the process is more mechanical: portfolios must be adjusted to match the new benchmark composition.The broader message is that China’s onshore indexes are becoming more aligned with Beijing’s strategic priorities.As tech, telecoms and industrial shares gain greater representation, the country’s equity benchmarks are likely to look increasingly different from the old mix of banks, consumer names and legacy industrials.</div></div>

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Goldman Sachs estimates China's upcoming semi-annual index rebalancing in mid-June will trigger over $48 billion in gross two-way passive flows. The changes to CSI and CNI indexes increase exposure to technology, telecoms, and industrial sectors, aligning with national strategic priorities. Key beneficiaries include Huagong Tech and semiconductor firms, while legacy names like Haier Smart Home face potential outflows. This reshuffle highlights the growing influence of policy-linked sectors on China's equity benchmarks.

Invezz

HGTECH

CSI 300

Haier Smart Home

HAIER SMARTHOME

CHINA TELECOM

Guotai CES Semiconductor Chip Industry ETF

ChinaAMC SSE STAR Semiconductor Material & Equipment Thematic ETF

MaxWealth CSI Household Appliances ETF

ChinaAMC Guozheng Semiconductor Chip ETF

Hang Seng TECH ETF I

GTJA Allianz CSI All Share Semiconductors & Semiconductor Equipment ETF

Tianhong CSI Computer Theme ETF

Dacheng Hang Seng Technology ETF(QDII)

China Southern CSI Semiconductor Industry Custom ETF

CSOP CSI 5G

Pengyang CSI Digital Economy Theme ETF

ChinaAMC CSI Semiconductor Material & Equipment Thematic ETF

Fullgoal CSI Consumer Electronic Theme ETF

Huatai-PB CSOP Hang Seng Technology ETF(QDII)

ChinaAMC Hang Seng Technology ETF(QDII)

Ping An CSI Consumer Electronic Theme ETF

E Fund CSI Household & Appliances Top ETF

Guotai CSI All Share Communications Equipment ETF

Tianhong Hang Seng TECH ETF(QDII)

Fullgoal CSI Communication Equipment Thematic ETF

E Fund CSI Semiconductor Material & Equipment Thematic ETF

Fullgoal CSI All Share Appliance ETF

CSOP HS TECH

ISHARESHSTECH-U

ISHARESHSTECH

Harvest SSE STAR Chip ETF

Guotai CSI Computer Theme ETF

GX CN SEMICON

GX CN SEMICON-U

GF CSI All Share Household Appliances ETF

Guotai CSI All Share Household Appliances ETF

China Merchants CSI Semiconductor Industry ETF

Harvest CSI All Share Integrated Circuit ETF

Yinhua CSI 5G Communication Theme ETF

E Fund CNI Robot Industry ETF

GTJA Allianz SSE STAR Chip Design Thematic ETF

Bosera CNI Top Household Appliances ETF

GF Fund CSI Semiconductor Material Equipment Theme ETF

ChinaAMC CSI 5G Communication ETF

Guotai CSI Semiconductor Material Equipment Theme ETF

Harvest CNI Communication ETF

Guotai CSI All Share Integrated Circuit ETF

Goldman Sachs

CSI 500

中证1000

Shenzhen Index

ChiNext

Shenzhen 100

ChiNext 50

SSE 50

SSE 180

STAR 50

YUANJIE SEMICONDUCTOR

HUA HONG SEMI

Hua Hong Grace

GIGADEVICE

VeriSilicon

Piotech

CENTURY HUATONG

Beijing-Shanghai High Speed Railway

HTGD

SHCI

GS Hldg R

China index reshuffle to trigger $48B in passive flows, Goldman says