Hong Kong’s key index compiler opens the door for China’s technology behemoths to join Hang Seng stock benchmark
- Hang Seng Indexes Company issues consultation paper to seek views on companies with weighted voting rights and secondary listings
- Move may be a precursor to inclusion of Alibaba, Meituan Dianping and Xiaomi to the Hong Kong exchange’s main market barometer
Hang Seng Indexes Company, responsible for compiling the benchmark stock index in Asia’s third-largest stock market, is taking public feedback on what could become the biggest revamp in its 36-year history.
The move may be a precursor to the inclusion of Chinese technology companies like Alibaba Group Holding, Meituan Dianping and Xiaomi Corporation, whose explosive growth have dovetailed China’s rise as an economic powerhouse. Mainland companies account for 60 per cent of alistings, 70 per cent of capitalisation and 80 per cent of trading volume in Hong Kong.
While Hang Seng Indexes Company began administering the local stock benchmarks in 1984, the market barometer traced its origin to November 1969.
Gordon Tsui, chairman of the Hong Kong Securities Association, agreed with the idea of reforms that would enable tech giants to join the benchmark index, but urged regulators to put in place a limit on each sector to any prevent disproportionate influence on the market.