Chow Tai Fook surges to seven-year high, ASM Pacific slumps after MSCI index review as mainland companies dominate changes
- Chow Tai Fook Jewellery jumps by the most in three months to reach a level not seen since February 2014
- MSCI semi-annual review resulted in 60 additions and 21 deletions of mainland companies in flagship MSCI ACWI gauge
Shares of Chow Tai Fook Jewellery jumped to the highest level in seven years while medical and clinical research firm Pharmaron Beijing led winners among Chinese companies that were added by MSCI to its family of global indices following a semi-annual review this week.
The jeweller, controlled by one of Hong Kong’s richest families, jumped 6.2 per cent in Hong Kong to HK$13.12 for its biggest one-day gain in three months. Pharmaron climbed 4.6 per cent to 172.38 yuan in Shenzhen, while its shares in Hong Kong surged 6.5 per cent to HK$169.90.
The three firms were among the 62 mainland Chinese and Hong Kong companies set to join several of MSCI’s global investible benchmarks, the index provider said following its decision late on Wednesday. The changes will take effect after the close of trading on May 27, it added.
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The review resulted in 109 additions and 96 deletions from the MSCI All-Country World Index, the broadest measure representing 2,974 developed and emerging-market companies. They had a combined market value of US$56.2 trillion at the end of April, according to its fact sheet.
Chinese companies dominated the latest review, with 60 additions and 21 deletions from gauges that track emerging markets and onshore A shares. Ganfeng Lithium, Ningxia Baofeng Energy and Pharmaron were the biggest joiners by capitalisation, though their stock reactions were mixed.
Ganfeng Lithium, which produces battery-grade chemicals like lithium carbonate and hydroxide and counts Tesla among its customers, rose 1.1 per cent to HK$93.60 in Hong Kong, while its Shenzhen-listed stock declined 0.2 per cent to 104.76 yuan.
