Hong Kong's H-Share Index Trailing in Hang Seng's Wake

Hong Kong’s surge has made the Hang Seng Index Asia’s equity king this year, but there’s still one part of the market that’s struggling to recoup its losses.

The Hang Seng China Enterprises Index’s recent rally has helped narrow its performance gap with the Hong Kong benchmark, but while the Hang Seng is nudging its 2015 peak, the gauge of mainland Chinese stocks listed in the city is still more than 20 percent away from its own high from two years ago.

The H-share measure is feeling the absence of star performers like Tencent Holdings Ltd. and AAC Technologies Holdings Inc., which are listed in Hong Kong but not included in the banks-heavy index.

While brokerages have outperformed in recent days, they’re also below their peak, and tech giant Tencent has more than doubled in value since mid-2015. Mindful of the disparity, Hang Seng is set to broaden the H-share gauge’s member universe from March.

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