HONG KONG (Reuters) – The Hang Seng Index made rule changes on Monday to allow it to incorporate Chinese internet giants Alibaba, Xiaomi and Meituan Dianping, a move set to shake up the composition of the 50-year-old index.
FILE PHOTO: Passersby look at a panel at a bank displaying the benchmark Hang Seng Index, after morning trading in Hong Kong April 17, 2015. REUTERS/Bobby Yip
The benchmark in the Asian financial hub is dominated by financial services institutions and conglomerates such as HSBC and CK Hutchison.
“There is a perception that local indices like Hang Seng aren’t necessarily reflective of the opportunity set available out there,” said Michael Lai, China equities portfolio manager at Franklin Templeton.
“(Inclusion) would be a reflection of how the Chinese markets, companies have developed.”
Companies from Greater China with a secondary listing in Hong Kong and those with two classes of shares carrying different voting rights will be included in the index,…
Source Reuters Tech News
Source link
