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Country Garden to drop out of Hang Seng Index as Hong Kong’s stock benchmark adds Sinopharm in quarterly recalibration
- The number of Hang Seng Index constituents will be unchanged at 80, with the changes effective from September 4
- Trip.com Group and Zijin Mining Group were among four companies added to the benchmark in the last review
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Sinopharm Group will be added to the Hang Seng Index next month after the latest quarterly review of Hong Kong’s stock benchmark, while property developer Country Garden Holdings will be removed after becoming a penny stock.
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That will keep the number of constituents unchanged at 80, compiler Hang Seng Indexes said in a statement after the market close on Friday. The changes will be effective from September 4.
The index compiler has added new constituents to the Hang Seng gauge for a second consecutive quarter after surprising investors by making no additions in February.
Hang Seng Indexes has fallen behind schedule in expanding the benchmark since it announced a sweeping plan in 2021 to overhaul the Hang Seng Index, which will eventually have 100 constituents. In the last rebalancing, four companies, including online travel agency Trip.com Group and gold producer Zijin Mining Group, were added to the index.
After the change, the Hang Seng Index will cover 64 per cent of the overall value of the Hong Kong market, compared with 65 per cent currently, according to the statement.
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As part of a quarterly review of the Hang Seng family of indexes, Trip.com will join the 50-member Hang Seng China Enterprises Index of Chinese companies trading in Hong Kong, the statement said. Property management firm Country Garden Services Holdings, an affiliate of Country Garden, will be removed from the gauge.
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