Hong Kong’s Hang Seng Index to stay unchanged after review

THERE will be no additions or subtractions to Hong Kong’s Hang Seng Index following its latest quarterly review, according to a statement.

That keeps the number of members on the gauge at 82, Hang Seng Indexes Co said on Friday (Feb 16). Hopes for inclusion on the list spurred a rise in shares of Xpeng and Prada, among others, earlier in the day.

Heavy on finance and tech, the index started an overhaul in 2021 to expand its universe to include more new economy stocks. Since then, it has added 30 members on a net basis, including vehicle maker Li Auto and travel platform operator Trip.com Group.

The Hang Seng Index was one of the world’s worst-performing major measures last year, owing to weakness in China’s economy and a property crisis.

At a time of frenzied investment in tech names linked to artificial intelligence, Hong Kong has not matched the surge in valuations that Japanese or American benchmarks have enjoyed in recent weeks.

The Hang Seng Index remains 4.2 per cent lower year to date.

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However, its cheap valuation has drawn bullish bets from some money managers, including Michael Burry. The index rose 3.8 per cent this week, after data showed that China’s travel momentum during the Chinese New Year holiday remain decent.

Options traders are also making speculative bets on a China rebound, treating them as “cheap lottery tickets” with a chance for a large payoff. BLOOMBERG