Hang Seng Index adds 2 blue chips, expanding to 95 constituents

Hang Seng Indexes Company added Hua Hong Grace (01347.HK) and Weichai Power (02338.HK) to the Hang Seng Index, expanding the benchmark's constituents from 93 to 95 in its quarterly review for the period ended June 30.

The additions come as the index compiler proposed this month to revamp the Hang Seng Tech Index methodology, allowing companies with the fastest revenue growth to qualify and raising constituent count from 30 to 50, according to a consultation paper. AI model developers MiniMax Group and Z.ai were among the most likely candidates for inclusion, according to investment banks including China International Capital Corporation, though neither was added in this round.

The changes take effect after market close on Sept 4 and become active Sept 7. Hua Hong Grace, a semiconductor foundry, rose 2.6 percent on Friday, while Weichai Power, a heavy-duty truck engine maker, gained 4.1 percent. Financials hold the largest HSI weighting at 34 percent, followed by consumer discretionary at 22 percent and information technology at 15.6 percent, according to Hang Seng Indexes Company data.

The inclusions will drive passive fund inflows from index-tracking ETFs and institutional rebalancing ahead of the effective date, with both stocks likely to see elevated trading volume and upward price pressure. The additions also strengthen the index's semiconductor and machinery exposure at a time when the Hang Seng Tech Index has declined 14 percent this year while the broader benchmark has remained stable.

Hua Hong Grace's inclusion follows a strong second quarter, with Citi raising its target price and earnings forecasts after results beat expectations and management provided positive guidance for the current quarter. The foundry's addition gives the HSI greater exposure to the semiconductor supply chain at a time when global chip demand remains a key driver of Asian equity markets.

Weichai Power's inclusion adds a heavy machinery component to the benchmark. The company, which manufactures diesel engines and commercial vehicle powertrains, has benefited from infrastructure spending and logistics demand across China.

The index review also comes as the Hang Seng Indexes Company seeks to increase technology exposure in the benchmark. The proposed HSTECH methodology changes, which would expand constituents from 30 to 50, reflect a broader push to capture faster-growing companies. J&T Express, the global logistics provider, was added to the HSI in June 2026, becoming a Hong Kong blue-chip company. The company reported adjusted net profit of US$350.6 million in the first half of 2026, up 124.3 percent year over year.

This article is for informational purposes only and does not constitute investment advice.