Tag: HKS

• ETFs tracking the Hang Seng Index currently stand at about $27.53 billion, according to CICC.
• Nio has been included in the Hang Seng Composite Index and the Hang Seng Technology Index since 2022.

Nio (NYSE: NIO, HKG: 9866) is expected to be included in another Hong Kong stock index, which will allow it to receive some passive investment inflows, despite the weak performance of its shares.

The Hang Seng Indexes Company Limited (HSI) will announce the results of its semi-annual review of the Hang Seng family of indexes after the trading hours on Friday, February 21, and will formally implement the adjustments on Monday, March 10, Chinese brokerage CICC said in a note today.

The adjustment will involve the major flagship indices such as the Hang Seng Index, Hang Seng China Enterprises Index, Hang Seng Tech Index and Hang Seng Composite Index, analyst Liu Gang’s team said.

In the adjustment of the Hang Seng Index, Nio is most likely to be included, followed by JD Logistics, Innovent Bio & Pop Mart, according to the team.

The team said their calculations prioritized market capitalization, followed by other factors including the companies’ position in their industries.

It should be noted, however, that history suggests that actual results may vary, as Innovent Bio and JD Logistics, for example, have ranked high in the past few forecasts but ultimately failed to be included, the team noted.

As semi-annual deliberations are usually highly variable and the size of passive funds tracking the flagship index is large, potential constituent changes as well as fund flows are worth keeping an eye on, the team said.

The current size of ETFs tracking the Hang Seng Index is about $27.53 billion, the Hang Seng China Enterprises Index about $5.41 billion and the Hang Seng Tech Index about $18.66 billion, the team’s calculations based on data from Bloomberg and Wind show.

Nio was listed in Hong Kong on March 10, 2022 as a secondary listing under the ticker symbol 9866, trading in board lots of 10 class A ordinary shares.

On May 20, 2022, HSI announced the results of its quarterly review and Nio was included in the Hang Seng Composite Index and the Hang Seng Technology Index, effective about a month later on June 13.

The Hang Seng Index is one of the earliest stock market indices in Hong Kong, launched on November 24, 1969, and is the most important index reflecting the performance of the Hong Kong stock market.

The Hang Seng Composite Index was established on October 3, 2001 and covers the top 95 percent of the total market capitalization of securities listed on the main board of the Hong Kong Stock Exchange.

Nio’s stock performed weakly in 2024, declining about 53 percent for the full year in Hong Kong. The Hang Seng Index rose about 18 percent and the Hang Seng Composite Index rose about 16 percent in 2024.

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