Hang Seng Indexes shakes up Hong Kong benchmark, aims to include 100 companies

HONG KONG (Reuters) - Hang Seng Indexes Co. Ltd said on Monday it would shake up the main Hong Kong stock benchmark with the goal of including 100 companies, part of an effort to ensure the index better reflects the range of firms listed in Hong Kong.

The Hang Seng Index has historically been dominated by financial services institutions, and even after recent tweaks and additions, these currently account for 40% of the benchmark.

Tech giant Tencent, insurer AIA, and HSBC combined currently make up just shy of 30% of the index.

The changes included increasing the number of constituents of the Hang Seng Index to as many as 80 by mid-2022 from the 52 now, with an eventual goal of reaching 100, the provider said.

It would also shrink the weighting cap on individual constituents to 8% from 10% now, and remove a lower weighting cap of 5% for companies whose shares come with different classes of voting rights, Hang Seng Indexes said.

"The new enhancements to the HSI will further increase its representation and make the Index more balanced and diversified," Anita Mo, Chief Executive Officer of Hang Seng Indexes Company, said in a statement.

The Hang Seng Index reached an all-time high in February, thanks in part to trading by mainland China-based investors.

The Stock Exchange of Hong Kong was the second most popular listing venue in the world in 2020 with deals worth US$31.2 billion, compared to Nasdaq's US$51.3 billion, according to Refinitiv data.

Earlier this year, Chinese online video service operator year, Kuaishou raised US$6.22 billion after exercising its over-allotment option.

(Reporting by Alun John; Editing by Edmund Blair and Angus MacSwan)

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

HKEX , Hang Seng Index


Next In Business News

'Roaring Kitty' acquires more shares in GameStop
FBM KLCI to move in tight range next week
Bank Islam CEO: Details on 5-year post-restructuring plan to be revealed Wednesday
Tropicana sells 1.85 million Top Glove shares at a loss
CPO futures likely to trend higher next week
Asian LNG spot prices rise as China replenishes inventories
US stops short of branding Vietnam, Switzerland, Taiwan currency manipulators
Oil price down but secures weekly gain on recovery hopes
GLOBAL MARKETS-World stocks at new peaks on strong China, US data
Food for thought

Stories You'll Enjoy