The compiler also added Zijin Mining Group, China’s biggest gold producer by market value, to the Hang Seng China Enterprises Index, replacing Xinyi Solar Holdings. The index tracks mainland Chinese enterprises listed in Hong Kong.
Inclusion in Hong Kong’s benchmark index boosts capital inflows for companies, as the gauge is commonly used as a reference by passive investment funds, which allocate their capital based on weightings in the index.
The changes will be implemented after the market closes on June 7, with the first trading day on June 11, a day after the Dragon Boat Festival public holiday in Hong Kong.
BYD Electronic will have a weighting of 0.22 per cent, and it will add HK$76.15 billion (US$9.8 billion) in market capitalisation to the benchmark. Country Garden Services now has a weighting of 0.1 per cent.
The handset maker fell 0.15 per cent to close at HK$33.80 on Friday, before the announcement. The stock has fallen 8 per cent this year, while the Hang Seng Index has gained 15 per cent. Country Garden Services, the property management arm of Country Garden Holdings, gained 9.8 per cent to close at HK$6.82 on Friday.
HSBC and Tencent Holdings remain the top weighted Hang Seng Index blue chips at 8 per cent weighting each, followed by Alibaba Group Holding, owner of the South China Morning Post, at 7.84 per cent, according to data from Hang Seng Indexes.
Zijin Mining will have a 1.28 per cent weighting in the China Enterprise Index, while the outgoing Xinyi Solar now has a weighting of 0.35 per cent.
The gold producer rose 1.5 per cent on Friday to close at HK$18.74. The stock has jumped 47 per cent this year, outpacing a 20 per cent increase in the Chinese Enterprise Index.
The number of constituent stocks in the Hang Seng Index will stay at 82, while the Hang Seng China Enterprises Index will also remain unchanged at 50.