Hang Seng Indexes Co. may add chipmaker Hua Hong Grace Semiconductor Ltd., AI-related firm Kingboard Laminates Holdings Ltd. and miner Zijin Gold International Co. to Hong Kong’s equity benchmark, according to analysts.
The index compiler will release the results of its quarterly review after the market close on Friday, with some changes taking effect on Sept. 7 and the rest by Sept. 14. It admitted three stocks to the gauge in its May reshuffle.
The rebalance is closely watched as a sign of which listed companies are excelling across key metrics, such as market capitalization and turnover. Inclusion can also attract investments from index-tracking funds. The Hang Seng Index has rebounded 13% from a low in June and is on track to snap three quarters of losses.
Hua Hong would attract about $184 million in passive inflows upon inclusion, the largest amount among potential entrants, said Willer Chen, vice president of equity research at Mizuho Securities Asia Ltd. Its shares have surged more than 50% this year, outperforming a measure of onshore peers.
Meanwhile, Quiddity Research analyst Janaghan Jeyakumar cited Kingboard Laminates as the top pick among industrials, the most underrepresented sector in the gauge relative to Hang Seng Composite Index. The supplier to the printed circuit board industry has emerged as a key beneficiary of the AI buildout, with the stock soaring more than 170% in 2026.
Several analysts also named Zijin Gold as a contender. Its large market cap strengthens the case for admittance, although “its low free float, at less than 15%, is a key caveat and could hamper inclusion,” Bloomberg Intelligence analysts led by Jason Liao wrote in an Aug. 20 note.
Hang Seng Indexes plans to expand the gauge to 100 members from 93 currently, and to achieve a more balanced representation of the city’s stock market.
It’s also seeking feedback for a revamp of the Hang Seng Tech Index to include more companies representing the fast-growing AI and robotics sectors. The index compiler is seeking stakeholder feedback by Sept. 18, with a target to announce final revisions by the end of next month.
Read: Hong Kong Tech Index Set for Overhaul With More Firms, AI Focus
With assistance from Sangmi Cha.
This article was generated from an automated news agency feed without modifications to text.
