Hang Seng Index Changes - Announcement Today

[shri]

Want want China, a snack company and AACT Technologies apparently. Article says they'll be dumped due to smaller market cap.

I saw that after I posted. Unfortunately does little to shake things up in terms of aging financials / property sector companies.

[Kowloon72]

I saw that after I posted. Unfortunately does little to shake things up in terms of aging financials / property sector companies.

True. The pace of change will be pretty glacial I guess. However, I'm feeling quite optimistic about it all. These ETFs are so heavily weighted towards the top 10 constituents, think a good bit over 50% of 2800 is currently in the top 10, and tech firms will make up a significant part if not the vast majority of that by the time this process of 'rebalancing' is complete.

[shri]

Some doors opened... Changes could come into effect by August.


https://amp.scmp.com/business/bankin...mpression=true

[shri]

And this...

https://twitter.com/DavidInglesTV/st...446279680?s=20

[Kowloon72]

Interesting they are capping the weighting at 5% per secondary/weighted company. At the moment, caps on individual companies are at 10% (although HK Tracker allocates 12% to Tencent so...idk)

[Kowloon72]

Duplicate

[shri]

And some changes in Nasdaq listing rules might be on the horizon.

This is the first time Nasdaq has put a minimum value on the size of IPOs. The change would have prevented several Chinese companies currently listed on the Nasdaq from going public. Out of 155 Chinese companies that listed on Nasdaq since 2000, 40 grossed IPO proceeds below $25 million, according to Refinitiv data.

https://uk.reuters.com/article/us-na...-idUKKBN22V01Q

[Coolboy]

So does this mean a flock of Chinese tech firms are going to come over here to list?

[shri]

Looks like three companies are on the shortlist.. Alibaba, Xiaomi and meituan

HSI Co.: 3 WVRs Basically Up to Standards in Joining HSI, Subject to Performance of Next Few Mths


https://www.aastocks.com/share/news/...6321/?lang=Eng

[shri]

Should have updated this over the weekend:

E-commerce conglomerate Alibaba (9988.HK) (BABA.N), handset maker Xiaomi (1810.HK) and WuXi Biologics (2269.HK) will enter the Hang Seng .HSI next month, broadening Hong Kong's traditionally financial services-dominated index.

and

The Hang Seng Index will drop Sino Land (0083.HK), Want Want China (0151.HK) and China Shenhua Energy (1088.HK),

(And in other news, Temasek has severely reduced its Alibaba holdings..)


https://www.reuters.com/article/us-h...-idUSKCN25A1DX