1. Investors remain confident in China's Cambricon despite a pending index reshuffle. 2. The reshuffle might cause over $1 billion in passive selling but won't deter interest.
While the reshuffle may lead to selling pressure, the strong investor confidence indicates resilience. In past scenarios, index reshuffles have often led to temporary price fluctuations without long-term effects on performance.
The reshuffle’s potential impact on passive selling could influence investor sentiment, but strong demand for shares mitigates risks. Therefore, it holds moderate importance for the broader market.
The immediate impact from the reshuffle may be short-lived as market adjustments occur. Historical instances show that stock prices often stabilize after initial reactions to index changes.