Alibaba, Xiaomi, and WuXi Biologics join benchmark in nod to new economy stocksBusiness | 14 Aug 2020 8:36 pm
Weighted voting rights companies, Alibaba Group (9988), smartphone maker Xiaomi (1810) will become part of the 50 constituent stocks in the benchmark Hang Seng Index, following a review, announced today.
They will be joined by and WuXi Biologics (2269).
These changes to the HSI, which represent the largest and most liquid listed companies, will be effective Monday, September 7.
The Hang Seng Indexes Company, which publishes the benchmark, had earlier changed the requirements to allow dual-class shares and secondary listings, to reflect the evolution of the equity market.
Dual-class and secondary listings are subject to a 5 percent weighting cap.
The index applies a 10 percent weighing cap to avoid the dominance of a single stock.
Sino Land (0083), Want Want China (0151), China Shenhua Energy (1088) were ejected from the benchmark.
In addition, Alibaba and Xiaomi, and Meituan Dianping (3690), will be included in the Hang Seng China Enterprises Index, which represents Chinese companies, or H shares. BYD (1211) and Citic Securities (6030) are removed from the H-share index.