· 14 Chinese autos and related companies included in MSCI

The fourth success of MSCI was a milestone for China A-shares; it was also an internationally recognized opportunity for selected cars and related listed companies. Of course, there are even more enormous challenges.
On June 21st, China's A-shares were included in MSCI's global benchmark stock index for the first time, which helped the world's second largest stock market, China A-Shares, to attract international fund investment.
Earlier, China’s A-shares had rushed three times but were blocked. MSCI said it will include 222 A-share large-cap stocks, which account for 0.73% of its flagship index.
It is worth noting that this time, including: SAIC Group (SH.600104), Guangzhou Automobile Group (SH.601238), BYD (SZ.002594), Changan Automobile (SZ.000625), Guanghui Automobile (SH.600297), etc. A total of 14 cars and related listed company stocks were included in MSCI.
Although the number is lower than the 19 banks, there are more than one car and related listed companies compared with the 13 selected stocks in the real estate industry. 14 auto stocks were included in MSCI, showing the recognition of the overall investment value of the Chinese auto industry by international organizations and their optimistic about their future development.
The move means that in the long run, these cars and related listed companies may be favored by international capital along with more than 200 other stocks. Some people think that these stocks are equivalent to Oscar nominations.
The British "Financial Times" said that in 2018 China's A shares will be included in MSCI's "flagship emerging market index", while tracking the index of about 1.6 trillion US dollars investment funds, then may buy A shares.
Currently, according to MSCI estimates, approximately $10.5 trillion of global funds are tracking the MSCI index.
However, MSCI CEO Fernandez pointed out that after the A-shares are included in MSCI, the initial capital inflows are between 17 billion and 18 billion US dollars; if China's A-shares are fully incorporated in the future, it is expected that the capital inflows may reach about 340 billion US dollars.
From the perspective of the short-listed cars and related listed companies, BYD, GAC Group, SAIC Group and Changan Automobile have become the representatives of passenger car companies, but the current market conditions are not the same.
BYD is working on the stalls of new energy and traditional fuel vehicles, and injecting funds into the cloud track project; GAC Group is getting better with its strong brand.
In contrast, SAIC and Changan Automobile, SAIC's own brands have strengthened, but the sales and profit growth of major joint ventures have slowed down; the latter's own brands, although they span millions of orders, are in a period of painful adjustment, and rely mainly on The current joint venture company Changan Ford is not optimistic about the current situation, lacking new product introduction, Changan PSA project may also become the "bottomless hole" of Changan Automobile Investment.
In addition, although there are four finalists in the passenger car factory, only the car dealers are included in the car dealership, which may imply that the development of Chinese car dealers may be treated with caution in the future.
In 2016, Guanghui Auto's revenue exceeded 100 billion, and vehicle sales (including used cars) exceeded 900,000. In the field of auto parts, a total of seven listed companies including Fuyao Glass, Weichai Power and Wanxiang Qianchao were shortlisted.
It is noteworthy that more than half of the cars and related listed companies that have been included in MSCI are involved in the field of new energy vehicles. In the first five months of this year, the production and sales of new energy vehicles in China were 147,000 and 136,000, respectively, an increase of 11.7% and 7.8% over the same period last year.
However, with the implementation of the new energy vehicle and other new policies, China's new energy vehicles may enter a new stage of development from next year. On June 21st, Tesla said that it is likely to put into production in Shanghai, China, and introduce new energy vehicles, which is equivalent to putting a real "squid" into China's new energy vehicle market.
From the performance of 14 cars and related listed companies' A-shares, Tianqi Lithium and Fuyao Glass have increased by 63.02% and 47.57% respectively since the opening of this year; SAIC Motors and SAIC listed subsidiaries The group ranked third and fourth respectively, with a year-on-year increase of 46.33% and 36.72%.
In contrast, BYD's increase this year is not large, only 2.72%. Some people worry that the company may be trapped in subsidies in the short term, but BYD is still competitive in the long run.
What is worrying is that Wanxiang Qianchao, China Power and Linglong Tire have become the three biggest losers among the 14 auto-related listed companies that have been included in MSCI.
From January to May this year, the production and sales of passenger cars in China were 9.638 million and 9.421 million, respectively, up only 3.1% and 1.5% compared with the same period of last year.
Even if the growth rate slows down, the Chinese market is still the world's largest auto market, and is entering an era of upgrading consumption structure, consumer demand for the 3, 4 and 5 lines, younger consumers, smarter, and the rapid development of new energy vehicles.
Therefore, the author believes that MSCI's decision to accept China's A-shares for the fourth time reflects the market position and importance of China's stocks at this stage. On the other hand, many autos and related listed companies can be short-listed and highlight Chinese cars. The industry is still optimistic about the capital market for a long time.

1. Elevator Traction Machine
   
   While there is a wide range of elevators to fit every need, they fall under three basic types: machine-roomless, gearless traction and geared traction.
   
   Traction elevators are the most common type of elevators. Elevator cars are pulled up by means of rolling steel ropes over a deeply grooved pulley, commonly called a sheave in the industry. The weight of the car is balanced by a counterweight. Sometimes two elevators are built so that their cars always move synchronously in opposite directions, and are each other's counterweight.