Laopu Gold, CMOC shares jump on addition to Hang Seng index

[HONG KONG] Shares of Chinese jeweller Laopu Gold and miner CMOC Group rallied in Hong Kong, after Hang Seng Indexes added the stocks to Hong Kong’s equity benchmark gauge following its quarterly review.

CMOC and Laopu each gained more than 7 per cent on Monday (Feb 9). Electric-vehicle battery-maker Contemporary Amperex Technology Co Limited, another stock to be added to the list, rose as much as 3.8 per cent. Prices may have been amplified by thin liquidity during holiday-shortened trading hours.

The changes, effective Mar 9, will bring the number of members on the Hang Seng Index to 90 from 88, according to a statement. The index compiler said that it will remove auto retailer Zhongsheng Group Holdings, which fell as much as 3.2 per cent.

The reshuffle is closely watched as a sign of which listed companies have excelled across key metrics, such as market capitalisation and turnover.

“In aggregate, the rebalancing could generate nearly US$8 billion in gross two-way passive flows,” Goldman Sachs strategists, including Alvin So, wrote in a note on Friday. BLOOMBERG