Feb. 13 (Bloomberg) -- China Mengniu Dairy Co. will be added to Hong Kong’s Hang Seng Index effective March 10, Hang Seng Indexes Co., compiler of the city’s stock market benchmark, said in a statement yesterday.
China Coal Energy Co., 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 & Technology Co. will be removed, it said.
The Hang Seng Index has fallen 2 percent to 22,285.79 since its last quarterly review on Nov. 8, when no changes were announced. 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 took steps to curb pollution. In 2013, China Coal dropped 48 percent and Zoomlion 37 percent in Hong Kong.
The changes announced yesterday may affect the share prices of the added and 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.
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