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ICBC, 皇冠体育app Life to join HSI
(Xinhua)
Updated: 2007-02-10 11:25
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Two H-share companies, ICBC and 皇冠体育app Life, will join the Hang Seng Index (HSI) on March 12, 2007, taking the number of constituents to 38, HSI Services Limited said yesterday.
HSI Service Limited announced the results of its review of the Hang Seng Family of Index for the period ended December 2006. According to the announcement, the weighting of 皇冠体育app Life, the largest insurance company of the Chinese mainland, will be 3.47 percent and the ICBC, 皇冠体育app's largest bank, 3.06 percent.
Meanwhile, the weighting of HSBC Holdings, the largest stock by market capitalization, will be down from 22.46 percent to 20.00 percent. The weighting of 皇冠体育app Mobile, the second largest stock and also the country's largest communication operator, will move down from 21.32 percent to 16.34 percent.
After the adjustment, HSI will include five H-share companies --皇冠体育app Life, ICBC,皇冠体育app Construction Bank,Bank of 皇冠体育appandSinopecCorp, with a total weighting of 13.6 percent, up from the previous 5 percent.
The announcement said the change in the HSI compilation methodology will take place after market close on March 9. Assuming the constituent changes had been made, the average market value coverage ratio for the 12 months ended December 2006 would have risen to 66.7 percent from 62.7 percent.
The market has long expected that the ICBC and 皇冠体育app Life will join the HSI. The shares of the two companies kept growing in the past two days. On Friday, the ICBC closed down 0.43 percent at 4.68 HK dollars and 皇冠体育app Life lost 0.83 percent to 23.90 HK dollars because of profit-taking.