According to Hang Seng Index Company, the semi-annual review results of Hang Seng series indexes from July 1, 2023 to June 30, 2024 will be announced after the market on August 16, 2024. The adjustment will officially take effect on September 9th, and the corresponding Hong Kong-listed list will also be adjusted on the same day.
Recently, Citic Securities pointed out that according to the latest screening criteria for Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, it is expected that 20 new stocks will be included in the Hong Kong stock list. The estimated threshold for market value is about 5.8 billion Hong Kong dollars, including 9 new stocks listed after the last review deadline (June 30, 2023).$Hang Seng Composite Index (800701.HK)$Industry distribution In the expected 20 stocks to be included, the industries with higher market capitalization weights are information technology, optional consumption, and energy, which are expected to include 6/3/3 stocks, respectively, and the market capitalization ratios are 41.5%, 14.3%, and 12.2%.
Specific symbols:
In the expected 20 stocks to be included, the industries with higher market capitalization weights are information technology, optional consumption, and energy, which are expected to include 6/3/3 stocks, respectively, and the market capitalization ratios are 41.5%, 14.3%, and 12.2%.
Specific symbols:
Information technology:$MARKETINGFORCE (02556.HK)$,$QUANTUMPH-P (02228.HK)$,$QUNABOX GROUP (00917.HK)$,$IMOTIONAUTOTECH (01274.HK)$,$SANERGY GROUP (02459.HK)$,$EASOU TECH (02550.HK)$
Optional consumption:$AUTOSTREETS (02443.HK)$,$TIANLI INT HLDG (01773.HK)$,$LAOPU GOLD (06181.HK)$
Energy:$MONGOL MINING (00975.HK)$,$DALIPAL HLDG (01921.HK)$,$SINOPEC SEG (02386.HK)$
Industry:$ZONQING LTD (01855.HK)$,$HAO TIAN INTL (01341.HK)$,$CALB (03931.HK)$
Finance:$SUNSHINE INS (06963.HK)$,$DL HOLDINGS GP (01709.HK)$
Health care:$CONCORD HC GP (02453.HK)$,$HEC CJ PHARM (01558.HK)$
Necessary consumption:$DEKON AGR (02419.HK)$
Institutions predict that Alibaba may be included
If it can successfully convert to a dual primary listing by the end of August, it may be included in the Hong Kong stock list this time. $BABA-SW (09988.HK)$According to current regulations, the inspection day of Alibaba-SW is the second Hong Kong stock trading day before the regular adjustment effect date of the Hang Seng Composite Index after the conversion to the primary listing (September 5). Considering that the daily average market value and total transaction volume of Alibaba-SW have already exceeded the admission criteria of weighted voting right stocks, if it can successfully convert to a dual primary listing, it may be included in the Hong Kong stock list this time.
Pay attention to the timing opportunity of Hong Kong Stock Connect adjustment
Historical data shows that during the period from the announcement date of the Hang Seng Index to the effective date of the Hong Kong Stock Connect, the average excess return of the expected inclusion target relative to the Hang Seng Index reached 5.5%. However, in the 30 days after the Hong Kong Stock Connect takes effect, the average excess returns for the stocks already on the list are significantly reduced.
Nevertheless, considering that the overall valuation of Hong Kong stocks is currently at a historical low, the outflow of funds and the further downside of the market are limited. Investors can still pay attention to the timing opportunities from the announcement date of the Hang Seng Index to the effective date of the Hong Kong Stock Connect.
Despite this, considering that the overall valuation of Hong Kong stocks is currently at a historic low point and that there is limited space for capital outflows and further market corrections, investors can still focus on timing opportunities between the announcement date of the Hang Seng Composite Index and the effective date of the Hong Kong Stock Connect.
Edited by Jeffrey