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Noodle maker Tingyi, property firm China Resources Mixc Lifestyle Services and Haier to join Hang Seng Index from December 5
- Rebalancing exercise will increase the number of index constituents to 76 from 73, and provisionally boost their capitalisation to HK$11.12 trillion
- Technology stocks will continue to be the main source of new additions, despite some turbulence in the sector, trader says
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Three companies including noodle producer Tingyi (Cayman Islands) Holding and state-owned property manager China Resources Mixc Lifestyle Services will join Hong Kong’s benchmark index as constituent stocks next month.
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Household electrical appliances maker Haier Smart Home is the third firm joining the Hang Seng Index effective from December 5, index compiler said in a statement on Friday following a quarterly review. The compiler is widening the gauge’s blue-chip membership to include more stocks from key industries and no stock will be removed from it as part of the current review.
The rebalancing will increase the number of index constituents to 76 from 73, and provisionally boost their capitalisation by HK$213.6 billion (US$27.3 billion) to HK$11.12 trillion. The entire Hong Kong stock market is worth about US$4.8 trillion based on November 17 prices, according to Bloomberg data.
“Technology stocks will continue to be the main source of new additions, despite some turbulence in the sector over the past two years,” said Wang Chen, a partner at Xufunds at Investment Management in Shanghai. “It’s an established trend that the sector will outweigh traditional ones like financials.”
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HKEX CEO Nicolas Aguzin on the future of Hong Kong’s capital market
HKEX CEO Nicolas Aguzin on the future of Hong Kong’s capital market
Companies in the financial industry such as insurer AIA and HSBC make up 36 per cent of the index’s weight, the biggest of the lot, according to the index compiler. Technology firms account for 27 per cent and property developers make up 6.8 per cent. HSBC, AIA, Tencent Holdings, Alibaba Group Holding and Meituan are the Hang Seng Index’s five biggest members.
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The index’s existing 73 members covered about 62 per cent of the city’s market capitalisation as of the end of October, while trading in these stocks covered more than 65 per cent of the market turnover, according to the compiler. About HK$104.6 billion worth of stocks changed hands every day in October on average, according to local stock exchange data.
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