The Zhitong Finance App learned that the State-owned Enterprise Index will include 10 large red chips and private enterprise stocks. HSBC published a report expecting that Tencent (00700), China Mobile (00941), and CNOOC (00883) may be potential candidates for the State-owned Enterprises Index.

The Hang Seng Index Company announced yesterday its plan to optimize the State-owned Enterprises Index. The index will add 10 large red chips and private enterprise stocks. The list is expected to be announced in February next year, and included in 5 stages within 12 months from March. The entire optimization plan will be completed in March 2019, and the number of constituent stocks in the National Index will increase from 40 to 50.

The company said that the included shares must also meet 3 additional criteria, including the company's initial public offering period of at least 3 years and a backshell company listing for at least 6 years; the past 3 fiscal years must have been profitable, net positive cash flow, and 3 consecutive years of dividends; and stock price fluctuations over the past 1, 3 and 12 months must not be higher than 3 times the fluctuation of the national index during the same period.

According to HSBC's screening criteria, in addition to Tencent, China Mobile and CNOOC, other potential candidate constituent stocks include China Unicom (00762), China Resources Land (01109), CITIC (00267), Shiyao Group (01093), Hengan International (01044), Shenzhou International (02313), Anta Sports (02020), Longhu Real Estate (00960), China Merchants Port (00144), Guangdong Investment (00270), Xinao Energy (02688), Huarun Electricity (00836).