Lenovo shares climb to 13-year high after gaining 'blue-chip' status

The Chinese technology giant Lenovo saw its share price climb to a new 13-year high a day after the company was added as a constituent stock of the benchmark Hang Seng Index.

Lenovo's shares rose 5.22 per cent to finish at HK$8.87 yesterday, its highest close since reaching HK$8.93 on August 1, 2000.

The previous 13-year high, HK$8.53, came on Tuesday last week, the day before the company reported its earnings for its financial third quarter, ended December 31.

The company, the world's second-largest supplier of personal computers, will be included in the index from March 4. It is replacing the loss-making Aluminum Corp of China, a state-owned enterprise, to complete the select roster of 50 blue-chip companies on the Hong Kong stock exchange that make up the Hang Seng Index.

Lenovo's inclusion will help increase the weighting of the information technology sector in the index after Tencent, China's biggest internet company, was added in September 2008.

Lenovo's chairman and chief executive, Yang Yuanqing said: "The market has clearly demonstrated confidence in Lenovo's ability to meet its commitments, maintain steady growth in a tough environment and execute a strategy that not only delivers strong short-term results but also lays a solid foundation for our long-term performance."