China Mengniu Added to Hang Seng Index, China Coal Removed

China Mengniu (2319) Dairy Co. will be added to Hong Kong’s benchmark Hang Seng Index (HSI) effective March 10, Hang Seng Indexes Co., compiler of the city’s benchmark stock market index, said in a statement today.

China Coal Energy Co. (1898), the nation’s second-largest producer, will be removed from the index, according to the statement. The total number of index members will remain 50, it said. BYD Co. will be added to the Hang Seng China Enterprises Index of Chinese companies’ so-called H shares, while Zoomlion Heavy Industry Science and Technology Co. will be removed, it said.

The Hang Seng Index fell 2 percent to 22,285.79 since its last quarterly review on Nov. 8, when no changes were announced. China Mengniu, in which Danone, the world’s biggest yogurt maker is increasing its stake, jumped 21 percent during the period. BYD, which makes electric vehicles, surged 63 percent last year as China’s government took steps to curb pollution. China Coal and Zoomlion both tumbled at least 37 percent in 2013.

The changes announced today may impact the share moves of the added or removed companies, as Hang Seng Index-tracked funds such as the Hang Seng Index Exchange-Traded Fund, with a total asset value of HK$37.8 billion ($4.87 billion) as of January, adjust their holdings.

To contact the reporter on this story: Kana Nishizawa in Hong Kong at knishizawa5@bloomberg.net

To contact the editor responsible for this story: Sarah McDonald at smcdonald23@bloomberg.net

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