Four companies including Baidu to see passive capital inflows after inclusion into Hang Seng Index – CICC
STOCKS VIEWS & ANALYSIS
Four companies including Baidu to see passive capital inflows after inclusion into Hang Seng Index – CICC
STOCKS VIEWS & ANALYSIS

Four companies including Baidu to see passive capital inflows after inclusion into Hang Seng Index – CICC

 

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China International Capital Corporation estimated that, as a result of the inclusion into the Hang Seng Index, Chow Tai Fook, Hansh Pharma, China Shenhua and Baidu will potentially see a passive capital inflow of $53.9 million, $31.1 million, $135 million and $135 million, respectively, according to a note on Monday.

Chinese AI giant SenseTime will see a passive capital inflow of $23.3 million after its inclusion in to the Hang Seng China Enterprises Index.

Hang Seng Indexes Company Limited said that China Shenhua, Chow Tai Fook, Hansoh Pharma and Baidu will be included in the Hang Seng Index, and SenseTime will be added into the Hang Seng China Enterprises Index, effective from September 5.

HSBC Holdings and CKH Holdings, on the other hand, were estimated to see a potential passive capital outflow of $141 million and $12.4 million, respectively, as the two stocks’ weightings as HSI constituent stocks were reduced, said CICC.

After the recent adjustment, the Hang Seng Index’s coverage of healthcare companies will increase to 32.4% from previously 27.6% and as the constituents of the index continue to increase, the coverage of the new economy to expand further said CICC.