Hang Seng to Boost Index Members to 80 in Biggest Makeover
- Changes to be implemented as early as May index review
- Under new rules, maximum weighting of firm in benchmark at 8%
The HSI, which in 2020 lagged global peers by the most in decades, has been moving away from being filled with financial and property stocks in recent years.
Photographer: Chan Long Hei/BloombergHang Seng Indexes Co. will boost the members of its Hong Kong stock benchmark to 80 and cap the weighting of any one company as it implements the biggest changes to the gauge’s 51-year-old history, in a bid to embrace the new economy.
The wide-ranging overhauls to the Hang Seng Index include increasing the number of constituents from 52 and limit a stock’s weighting to 8%, the firm said in a statement on Monday. The revamp also shortens the listing history requirement for a company to be included into the gauge. Implementation of the changes will begin as early as its May index review and go through mid-2022.