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Hong Kong’s Hang Seng Indexes Company plans to nearly double the number of stocks in its flagship benchmark to 100 to make it more widely representative, a move that one market participant describes as “inevitable” to accommodate Chinese shares listed in the city.
The company will select the stocks from seven industry groups, including technology and healthcare, and slash the listing history requirement for inclusion into the 52-year-old Hang Seng Index to three months from the current two years.
The index provider is targeting to raise the number of stocks in the benchmark to 80 by mid-2022 through regular reviews, and cap the total at 100, it says in a statement on March 1.
By Reuters Staff
(Adds CEO quote, Hong Kong listing data)
HONG KONG, March 1 (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.