Media365
Labubu-maker Pop Mart, Chinese e-commerce giant JD Logistics and mobile telecommunication provider China Telecom will join the Hang Seng Index next month, as the compiler of the Hong Kong’s stock benchmark makes steady progress towards boosting the number of constituents to 100.
The three mainland companies would be added to the gauge after the market closes on September 5, taking the tally to 88 constituents from 85, Hang Seng Indexes said in revealing the results of its latest quarterly review on Friday after the market close. No companies would be ejected, it said.
Pop Mart would also join the Hang Seng China Enterprises Index of mainland companies trading in Hong Kong, according to the statement. There would be no changes to the Hang Seng Tech Index, the compiler added.
The changes to the indexes will be closely monitored by global investors, as Hong Kong stocks are back in favour following a de-escalation of China-US tariff tensions and expectations of a rate cut by the US Federal Reserve. The Hang Seng Index has risen 25 per cent this year, the second-best performer in Asia after South Korea’s Kospi. The Hong Kong benchmark is now valued at 11.7 times earnings, the cheapest among the world’s key markets except Brazil.
The index reshuffle typically boosts the stock prices of newcomers, which investors chase due to either their growing prominence or the need to recalibrate passively managed equity portfolios.
As of Friday, Pop Mart’s shares have surged by 256 per cent so far this year to HK$320.40 each, while China Telecom climbed by 31.2 per cent to HK$6.18 and JD Logistics rose by 2.44 per cent to HK$12.99.
