Budweiser, Anta, Meituan Rise After Hang Seng Index Inclusion
Budweiser, Anta, Meituan Rise After Hang Seng Index Inclusion
(Bloomberg) -- Shares of Meituan, Anta Sports Products Ltd. and Budweiser Brewing Co. APAC Ltd. rose on their first trading day since the compiler of Hong Kong’s benchmark Hang Seng Index said the three would be joining it.
Food delivery giant Meituan rose 4.1%, while Budweiser added 5.9%. Anta Sports rose 6.4% to a fresh record high. Hang Seng Indexes Co. confirmed in a statement Friday that the three would join the index in December, amid changes that will increase its constituents to 52 from 50.
Swire Pacific Ltd., a founding member of Hong Kong’s benchmark stock index five decades ago, will lose its seat. It fell 1.6%, while the Hang Seng Index closed up 0.9% at its highest level in eight months.
The moves could affect tens of billions of dollars in pension fund assets and exchange-traded funds that track the gauge. Hong Kong’s benchmark index is near its lowest level versus the MSCI World Index in 17 years. The Hang Seng is down 6.4% for the year, compared with a nearly 20% gain for China’s CSI 300 Index and the Nasdaq Composite’s 32% rise.
Meituan was seen as one of the most likely candidates for inclusion, given its market position and as the benchmark looks to better reflect a more technology-driven economy. It was eligible for inclusion after the index compiler earlier this year allowed firms carrying unequal voting rights and dual-class shares to join the benchmark.
Swire Pacific’s shares have taken a beating lately. Last year’s protests and the coronavirus pandemic have hit both its airline, Cathay Pacific Airways Ltd., as well as retail and real estate operations. The stock has lost 41% in 2020, the biggest decline among the Hang Seng Index’s constituents.
Last month the index compiler said it would fast-track new listings into its China Enterprises, Composite and Tech gauges. It added that it was reviewing the composition of the Hang Seng Index.
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Elsewhere on Monday, China Mobile Ltd. was among leading decliners in Hong Kong, falling 3.7%. The stock has been hit by U.S President Donald Trump’s order to ban American investments in Chinese firms deemed to be owned or controlled by the military.
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