Goldman Sachs Estimates China’s Major Index Rebalancing to Unleash $48bn in Passive Flows

Goldman Sachs estimates China’s mid-June benchmark rebalancing will trigger more than $48 billion in two-way passive flows.

The changes will reshuffle CSI and Shenzhen index constituents, especially in large- and mid-cap benchmarks such as CSI 300, CSI 500, CSI 1000, SSE 50 and ChiNext.

Weights are set to increase for strategic sectors like semiconductors, IT and advanced manufacturing, while some other stocks will be reduced or removed.

The move could shift liquidity, valuations and sector positioning toward Beijing-prioritized industries.