Lates News

According to foreign media reports on October 24, S&P Dow Jones Indices of the United States issued new rules adjusting the classification criteria for growth stocks and value stocks. The new rules will incorporate intangible assets, expected earnings, and free cash flow into the evaluation factors for value stocks; the growth stock evaluation criteria will no longer reference an individual stock's upward momentum over the past 12 months. The new rules will take effect before the U.S. stock market opens on December 21 local time. Funds tracking the indices will need to adjust their positions accordingly, and approximately $375 billion in passive funds will be affected. Researchers and fund managers believe that the long-term lackluster performance of value stocks is partly due to flaws in the existing measurement standards. (CCTV Finance)