Preview of the HSI and southbound Stock Connect
reshuffle
■ The results of the half-yearly review of the Hang Seng Composite Index will be announced on 20 Aug, which will affect the southbound Stock Connect universe.
■ We cover three potential candidates for inclusion in the southbound Stock Connect universe: EC Healthcare (2138.HK), PAX Global Technology (0327.HK) and Netjoy Holdings (2131.HK).
■ Hot IPOs, such as Angelalign Technology (6699.HK) and Nayuki Holdings (2150.HK), are also potential candidates for the southbound trading list.
■ Five stocks may be added to the HSI in the upcoming quarterly review to reach the target of 80 stocks by mid-2022.
■ If a balanced representation of various industries is more important, we expect Li Ning (2331.HK), BeiGene (6160.HK), CR Beer (0291.HK), Innovent Biologics (1801.HK), Conch Cement (0914.HK) and Sunac China (1918.HK) to have a higher chance of being added to the HSI.