Exactly.
"The S&P/ASX indices only include securities that are considered to be institutionally investable, and market capitalization is a key criterion for stock selection"
Market cap is a key criteria but not the only one. CQT inclusion has been based on both. They are now "institutionally investable" because they have a large enough market cap and liquidity.
Your comment- "Will only fall out of 300 after market cap (or SP) drops significantly (yet to work it out)" is incorrect. It will drop out if trading dries out too, not just a SP drop.
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