S&P Rewrites Stock Classification Rules! $375 Billion in Funds May Be Forced to Rebalance; Growth and Value Stocks Face a "Major Shakeup"

Zhitong Finance APP has learned that after S&P Dow Jones Indices adopts new stock classification rules, growth stocks and value stocks will undergo a reshuffle. According to a statement released by the index provider on Friday, S&P will incorporate intangible assets, expected earnings, and free cash flow into the indicator system for determining whether a company is cheap relative to its stock price. At the same time, the 12-month price momentum indicator, which measures a company's growth potential, will be removed. These new rules were introduced after a recent consultation period and will officially take effect during the annual index rebalancing before the market opens on December 21.