Hang Seng Indexes to increase benchmark index constituents to 80 by mid-2022

Hang Seng Indexes Co. Ltd. plans to increase the number of Hang Seng Index constituent stocks to 80 by mid-2022 from the current 52 stocks, as part of a set of proposed changes to ensure the index is the most representative and important benchmark of the Hong Kong stock market.

The changes, which follow the results of a month-long consultation, also include ultimately fixing the number of constituent stocks at 100.

Index constituents will also be selected from seven industry groups, which will be reviewed at least every two years, while the listing history requirement will be shortened to three months. The seven groups industry are Financials, Information Technology, Consumer Discretionary and Consumer Staples, Properties and Construction, Telecom and Utilities, Healthcare and Energy, Materials, Industrials, and Conglomerates, the company said March 1.

The changes will be implemented starting from the company's index review in May. The proposed lowering of the weighting cap for individual constituents to 8% from 10% will become effective from the index rebalancing in June.

"The new enhancements to the [Hang Seng Index] will further increase its representation and make [it] more balanced and diversified," Hang Seng Indexes CEO Anita Mo said.

Hang Seng Indexes Co. Ltd. manages and compiles the Hang Seng family of indexes, covering stocks listed in Hong Kong and mainland China, including the Hang Seng Index.