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Hong Kong stock market
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Hang Seng Index to eject Country Garden Services, add handset maker BYD Electronic

  • BYD Electronic, which makes devices such as smartphones for brands including Huawei, will add US$9.8 billion in market capitalisation to the benchmark
  • China’s largest gold producer Zijin Mining Group will join the Hang Seng China Enterprises Index, replacing Xinyi Solar Holdings

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An aerial photo taken on October 31, 2021 shows a logo of Country Garden Holdings on top of a building in Zhenjiang, in China’s eastern Jiangsu province. Photo: AFP
Enoch Yiu
Hang Seng Indexes Company, the compiler of Hong Kong’s Hang Seng Index, will add handset assembler BYD Electronic International to the benchmark following its latest quarterly review, replacing Country Garden Services Holdings, it said in a statement on Friday.
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The compiler also added Zijin Mining Group, China’s biggest gold producer by market value, to the Hang Seng China Enterprises Index, replacing Xinyi Solar Holdings. The index tracks mainland Chinese enterprises listed in Hong Kong.

Inclusion in Hong Kong’s benchmark index boosts capital inflows for companies, as the gauge is commonly used as a reference by passive investment funds, which allocate their capital based on weightings in the index.

“The latest revamp of the Hang Seng Index makes sense, as the mainland property market remains full of uncertainties even with the recent government support measures,” said Tom Chan Pak-lam, permanent honorary president of the Institute of Securities Dealers. “It would be better to let a leading handset maker replace Country Garden Services.”

The changes will be implemented after the market closes on June 7, with the first trading day on June 11, a day after the Dragon Boat Festival public holiday in Hong Kong.

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BYD Electronic will have a weighting of 0.22 per cent, and it will add HK$76.15 billion (US$9.8 billion) in market capitalisation to the benchmark. Country Garden Services now has a weighting of 0.1 per cent.

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