Tencent, China Mobile and other China new-economy stocks set to join H-share index
After the rebalancing, the weighting of China’s new-economy companies is likely to make up 28 per cent of the H-share index, up from 6 per cent currently, according to China International Capital Corp
China Mobile, CNOOC and other mainland companies that are incorporated overseas may be added to the Hang Seng China Enterprises Index as part of a regular review next week, according to China International Capital Corp.
China Unicom, China Resources Land and Tencent Holdings have also been shortlisted as new candidates for the so-called H-share gauge, Wang Hanfeng and Lin Yingqi, analysts at the investment bank, wrote in a note on Tuesday.
After the rebalancing, the weighting of China’s new-economy companies is likely to make up 28 per cent of the H-share index, compared with 6 per cent currently, according to the report.
The move underpins more efforts by Hong Kong, a major offshore venue for listings of mainland-based companies, to provide global investors a deeper insight into China’s ongoing transition to a more service and technology oriented economy.
The change has also been reflected in the stock market, with Tencent now the most valuable company on the Hang Seng Index. The Hong Kong exchange is in the midst of revising its listing rules to attract more listings of technology and biotech firms after the successful initial public offering of online insurer ZhongAn Online P&C Insurance.