China ‘Snow’ beer maker among five new entrants to China Enterprises Index from June 17
- In its latest quarterly review, Hang Seng Indexes will add five new entrants to the gauge tracking China’s leading companies, while holding the number of constituents fixed at 50
China’s largest beer maker is among five new constituent stocks that will join the Hang Seng China Enterprises Index from June 17, compiler Hang Seng Indexes said on Friday as part of its quarterly review.
The incoming constituents include China Resources Beer (Holdings) which sells“Snow” brand beer, mainland property developers Longfor Group and Country Garden Holdings, as well as ANTA Sports Products, which is the largest mainland sportswear company, and ENN Energy Holdings.
Among the new entrants, Country Garden will have the largest weighting in the index at 1.7 per cent, while Longfor will have the smallest at 0.94 per cent. The remaining entrants will all have a 1 per cent weighting.
The index reshuffle will result in the exit of H-shares Air China, Huaneng Power International, GF Securities, CNG Power and Great Wall Motor, the index compiler said on Friday.
“Traditionally, the Hang Seng China Enterprises Index is called the ‘H-shares index’ as it is mainly tracking H-shares,” said Jeffrey Chan, a founding partner of Hong Kong-based Oriental Patron Financial Group. “This is not ideal as many red chips or privately owned companies such as Tencent and Xiaomi are very big while they are not H-shares. The index compiler is heading in the right direction to rebalance the constituent stocks’ composition. The new index composition is more in line with the market definition of Chinese companies.”
In January Hang Seng Indexes announced it would increase the number of red chips and privately own mainland enterprises in the Hang Seng China Enterprises Index while cutting the number of mainland state-owned H-shares.
