The Hang Seng Indexes Co. has announced that Hua Hong Grace Semiconductor Ltd., a chipmaker, and Weichai Power Co. will be included in Hong Kong's equity benchmark. This change will increase the total number of members in the gauge from 93 to 95. The changes are set to take effect on September 7.
This follows an earlier announcement in May where three stocks were admitted to the gauge, bringing the total to 93 constituents. These additions are part of a broader plan by Hang Seng Indexes to expand the gauge to 100 members to achieve a more balanced representation of the city's stock market.
Analysts had previously speculated on potential inclusions, with Hua Hong Grace Semiconductor Ltd. being a strong contender. Its shares had surged over 50% this year, and an inclusion was expected to attract approximately $184 million in passive inflows, making it the largest among potential entrants. Other companies like Kingboard Laminates Holdings Ltd. and Zijin Gold International Co. were also mentioned as possibilities.
