Recently, GCL TECH (03800.HK) was successfully ed into the MSCI index, which came into effect after the closing on November 30th, 2022.

It is reported that being one of the most influential index series in the world, the MSCI index ranging from equity, fixed assets, and hedge funds to the stock market is also the benchmark index most used by global portfolio managers. More than $10 trillion of global assets are now benchmarked against the MSCI index with over 1,000 underlying ETFs.

Among them, indexes that track the performance of China concept stocks include the MSCI China A-share Index, the MSCI China A-Share International Index, and the MSCI China All-Share Index. As the representative of photovoltaic materials enterprises in China, GCL TECH was successfully included in the MSCI China All-Share Index.

The criteria for MSCI's inclusion in constituent stocks primarily cover market capitalization circulation, company size, industry representativeness, financial liquidity, etc. The ion of GCL TECH fully demonstrates the recognition of the company and its technology of FBR granular silicon in the international capital market.

As is well known, in the first three quarters of 2022, the profit of GCL TECH's photovoltaic materials reached RMB 12.7 billion. As the production capacity of granular silicon in Xuzhou, Leshan, and other bases of the company has continued to increase, the company strived to reduce the production cost of granular silicon and established a clear superiority with the support of new areas and new devices.

In addition, as the only enterprise in the world that has obtained commercial certification for real application of perovskite module, Kunshan GCL Photoelectric Materials Co., Ltd., a subsidiary of GCL TECH, has expanded its area to 1m*2m. At present, the world's first 100MW mass production line has been built, with the conversion efficiency exceeding 18% by the end of 2023. It is worth noting that since the MSCI China All-Share Index is nested with the MSCI Emerging Market Index, included in the MSCI China All-Share Index entails inclusion in the MSCI World Index series, making GCL TECH easier to attract overseas passive funds.

The inclusion of GCL TECH in the MSCI index indicates to some extent that the company has gained recognition by the international capital market, which will pour some incremental funds into the company for improved trading activity of the stock. At the same time, it also reflects that in the context of carbon neutrality, the photovoltaic industry is playing an increasingly important role in China's economy. With the growth potential of photovoltaic enterprises becoming more prominent, the industry will win the favor of more investors and institutions.