CICC Previews HSI Reshuffle: Zhipu and 7 Other Stocks May Be Added
Taylor Wilson
CICC estimates 8 stocks qualify for August Hang Seng Index inclusion, with Zhipu and MINIMAX-W among the top candidates; Stock Connect is expected to see 49 additions and 14 removals, with passive funds set to rebalance on September 4.
Which stocks could join the Hang Seng Index?
CICC's model flags Zijin Gold International (02259), Zhipu (02513), and MINIMAX-W (00100) among 8 stocks meeting inclusion criteria.
The screening ranks candidates by market cap first, then factors in sector representation and coverage.
Hang Seng Indexes Company will announce results after market close on August 21 (Friday); changes take effect September 7 (Monday).
How reliable is the quant screening — what has gone wrong before?
CICC cautions that quant rankings and actual outcomes often diverge.
Case in point: Yum China and BeiGene ranked near the top in multiple prior rounds but were never added.
This means → some HSI inclusion criteria — such as sector and listing-venue representation — lack clear quantitative thresholds, making subjective judgment the biggest wildcard.
What changes in Stock Connect — 49 in, 14 out?
The Hang Seng Composite Index rebalance directly determines the Stock Connect investable universe; CICC estimates 49 stocks qualify for addition this round.
Anker Innovations, Luxshare Precision, Sanen Zhonghuan, Hefei Crystal, and Zhongji Innolight — all listed in Hong Kong since July — will join Stock Connect after their respective 30-day price-stabilization windows expire in August.
14 stocks are expected to be removed, including JS Global Lifestyle, Mingyard Cloud, and IFBH, due to market-cap coverage falling past the 96th percentile, capitalization below HK$4 billion, or trading suspensions.
Why can't virtual-asset platforms enter Stock Connect yet?
HASHKEY HLDGS and OSL Group were added to the Hang Seng Composite Index in March, but their virtual-asset platform status means near-term Stock Connect inclusion remains unlikely.
In plain terms = making it into the index does not mean making it into Stock Connect — regulators maintain an extra layer of scrutiny for virtual-asset companies, and no policy-change announcement has been issued.
When does the money move — what matters on September 4?
ETFs tracking the HSI, Hang Seng China Enterprises Index, and Hang Seng Tech Index total roughly US$28.1 billion, US$7.5 billion, and US$50.7 billion respectively (as of July 28; sources: Bloomberg, Wind).
To minimize tracking error, passive funds will rebalance on the last trading day before the effective date — September 4.
This means → affected stocks could see unusually heavy turnover that day, especially in the closing auction; some active managers may front-run the rebalance once results are announced.
Content is for reference only, not financial advice.