Chinese computer maker Lenovo Group kicked out of Hang Seng Index, again

Lenovo Group, a Chinese personal computer maker, will lose its status as a component of Hong Kong’s benchmark Hang Seng Index from June 4, Hang Seng Indexes Company said on Friday.

Lenovo initially joined the index in 2000, but was removed in 2006. In March 2013, it was reinstated, but its share price has plunged nearly 60 per cent since then.

At Friday’s close, shares closed 0.5 per cent higher at Lenovo at HK$3.72, giving it a market cap of HK$45 billion (US$5.73 billion) – the smallest among the benchmark’s 50 constituent stocks.

Lenovo will be replaced by Hebei-based CSPC Pharmaceutical Group as part of the index compiler’s quarterly review in March.

CSPC Pharmaceutical had a market value of HK$127 billion as of Friday’s close.

Lenovo said in a written statement to the Post that the company “respects the review results” of the Hang Seng Indexes Company, but it’s “singularly focused on our ongoing transformation to drive sustainable long-term returns for our shareholders.”