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Baidu, Shenhua Energy included in Hang Seng Index quarterly revamp as benchmark coverage expands to 73 stocks
- The four new members, including Chow Tai Fook and Hansoh Pharmaceutical, have a combined market value of US$88.7 billion, based on their closing prices on Friday
- The quartet will have a combined weighting of 1.71 per cent on the Hang Seng Index
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The Hang Seng Indexes Company will add four stocks including artificial intelligence giant Baidu and China Shenhua Energy to the city’s stock benchmark from next month, boosting the index capitalisation by HK$696 billion (US$88.7 billion) in the latest quarterly review.
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Together with Chow Tai Fook Jewellery and Hansoh Pharmaceutical Group, the quartet will join the index from September 5, the index compiler said in a statement on Friday.
Unlike the last review in May, no constituents were removed in the year’s third quarterly review.
The latest review will raise the Hang Seng Index membership to 73 from 69, enlarging the market value by HK$696 billion based on Friday’s closing prices. The company, owned by Hang Seng Bank, had earlier aimed to grow the list to 80 by mid-2022, and to 100 eventually.
“With only one more quarterly review left for the rest of the year, the index company is unlikely to reach its target of 80 constituents,” said Alvin Cheung, as associate director at Prudential Brokerage.
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