Restructuring indexes Alibaba, Xiaomi to join Hang Seng

HONG KONG:

E-commerce conglomerate Alibaba, handset maker Xiaomi and WuXi Biologics will enter the Hang Seng next month, broadening Hong Kong’s traditionally financial services-dominated index. The change announced by the Hang Seng Index’s Company on Friday was made possible after the 50-year-old benchmark’s publisher changed the rules on shareholder structure and secondary listings in May. China’s largest financial hubs are revamping key indexes to give more weight to internet companies, which are increasingly important to its economy. Alibaba and Xiaomi, along with delivery platform Meituan Dianping , will also join the ‘H-share’ Hang Seng China Enterprises Index, which represents Chinese companies listed in the city. Changes to both indexes are effective from September 7. About $19.7 billion of assets under management in exchange-traded products were linked to the Hang Seng Index with another $5.4 billion tied to the H-share index as of July, the index provider said.

Published in The Express Tribune, August 15^th, 2020.

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