Hang Seng adds Sunac, Geely, Want Want, Taiping Insurance and Fosun to its H-share index during quarterly rebalancing

The Hang Seng China Enterprises Index (HSCEI), which tracks the performance of Chinese companies listed in Hong Kong, has added a developer, a carmaker and one of the country’s largest conglomerates to its constituents in its latest quarterly rebalancing.

Sunac China Holdings, the country’s fourth-largest developer, has been added to the 50-member benchmark with a 1.54 per cent weighting, according to an announcement by the compiler of the gauge Hang Seng Indexes after market hours. That would place Sunac in 17th place ahead of rival Country Garden Holdings and behind China Tower Corporation.

Geely Automobile Holdings, China’s biggest privately owned carmaker and whose founder is the biggest shareholder in Daimler, was added with a 1.17 per cent weighting in the 22nd position, tied with China Resources Beer Holdings and PICC Property & Casualty.

The quarterly rebalancing, effective September 9, followed the January announcement by Hang Seng that it would increase the number of privately owned companies to better reflect the stake held by the non-state sector in China’s economy, reducing the representation by state-owned companies. The exercise is important for investors, especially the passively managed funds, as a reference benchmark to measure their performances.

Want Want China, a foodstuff company which produces rice crackers and beverages, was added with 0.65 per cent weighting. China Taiping Insurance Holdings was added with 0.6 per cent, while Fosun International, one of China’s largest private conglomerates, made it to the index with 0.47 weighting.