Hang Seng Indexes Co. is considering adding chipmaker Hua Hong Grace Semiconductor Ltd., AI-related firm Kingboard Laminates Holdings Ltd., and miner Zijin Gold International Co. to Hong Kong's equity benchmark. Analysts are closely watching this quarterly review, the results of which will be released after market close on Friday. Any changes to the index are expected to take effect between September 7 and September 14. This follows the May reshuffle, which saw three stocks admitted to the gauge.
Inclusion in the Hang Seng Index is a significant event as it signals the strong performance of listed companies based on key metrics like market capitalization and turnover. Such an addition can also attract substantial investments from index-tracking funds. The Hang Seng Index has recently shown a rebound, increasing by 13% from a low in June and is poised to break a three-quarter streak of losses.
Hua Hong Grace Semiconductor Ltd. is anticipated to attract the largest passive inflows among potential entrants, estimated at about $184 million, according to Willer Chen, vice president of equity research at Mizuho Securities Asia Ltd. Its shares have surged over 50% this year, outperforming its onshore peers. Kingboard Laminates is highlighted by Quiddity Research analyst Janaghan Jeyakumar as a top industrial pick, being a key beneficiary of the AI buildout, with its stock soaring more than 170% in 2026. While Zijin Gold's large market capitalization makes it a strong contender, Bloomberg Intelligence analysts, led by Jason Liao, note its low free float, which is less than 15%, could be a significant obstacle to its inclusion.
