On May 21, Hang Seng Indices announced today the results of the first quarter of the Hang Seng Index series quarterly review. All changes will take effect from June 7 (Monday).
Hang Seng Index Company: Xinyi Solar, BYD Shares, and Country Garden Services were included in the Hang Seng Index. The number of constituent stocks will increase from 55 to 58.
The number of constituent stocks in the Hang Seng Technology Index has been reset from the current 31 to 30. Auto Home and Bilibili were included in the Hang Seng Technology Index; ZTE, Hongteng Precision, and Zulong Entertainment were excluded.
The number of constituent stocks in the Hang Seng China Enterprise Index was reset from the current 51 to 50. BYD shares and Evergrande Properties were included in the national index, and Guangdong Investment, China Unicom, and China Tower were excluded.
At the same time, the weights of Tencent and Xiaomi were lowered, while the weights of Meituan and Ali were raised. Since ETFs currently tracking the Hang Seng Index and the State-owned Enterprises Index are as high as US$22.03 billion and US$4.93 billion respectively, totaling HK$209.2 billion. Changes in weight will drive huge passive adjustments of capital. Out of these companies, who do you think is the biggest winner? What is the logic behind this adjustment?