[S&P Adjusts Rules, Growth and Value Stock Classifications to be Restructured] According to Jinse Finance, on October 24th, S&P Dow Jones Indices adjusted its rules for classifying stocks into growth and value stocks, potentially leading to significant changes in the constituent stocks of related indices. According to a statement released by the company on Friday, the new rules will incorporate intangible assets, expected earnings, and free cash flow into the evaluation factors to determine whether a company's stock price is relatively undervalued. Simultaneously, the indicator for measuring a company's growth potential will no longer include stock price momentum over the past 12 months. This adjustment was made after a recent consultation and will officially take effect in the annual index restructuring before the market opens on December 21st. The new rules may force funds tracking the relevant indices to adjust their holdings to match the new constituent stock list. Industry research analyst James Seifert estimates that at least $375 billion in passive fund assets are linked to the affected indices. This adjustment by S&P stems from a long-standing debate in the market about whether traditional valuation metrics for value stocks remain effective. Researchers and fund managers believe that the long-term underperformance of value stocks is partly due to flaws in existing metrics, especially the price-to-book ratio. (Jinshi)