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<Research>CICC Expects NIO, JD LOGISTICS, POP MART to Be Blue-chips-to-be, 24 Stocks May Be Included to Southbound Trading of Stock Connect
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After market closed on 21 February (Friday), the Hang Seng Indexes Company will announce the results of its semi-annual review of the Hang Seng family of indices (the deadline for the review and inspection is 31 December 2024), which involves the major flagship indexes of Hong Kong stocks, such as the HSI, HSCEI and HSTECH, as well as the Hang Seng Composite Index (HSCI), which is closely related to the scope of investment for Southbound Trading of Stock Connects, CICC released a research report saying.

Based on the existing available public data, CICC estimated that NIO-SW (09866.HK), JD LOGISTICS (02618.HK), INNOVENT BIO (01801.HK) and POP MART (09992.HK) are among the top potential candidates for inclusion.

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Based on the HSI adjustment methodology and the understanding and validation of the non-quantitative adjustment criteria through the results of many previous actual adjustments, the broker anticipated that BANKCOMM (03328.HK), ZTO EXPRESS-W (02057.HK), SWIREPROPERTIES (01972.HK), NIO-SW, JD LOGISTICS, INNOVENT BIO , BEIGENE (06160.HK) and others are ranked at the top of the HSI list, and have the potential to become candidates for inclusion.

In terms of adjustments to the HSCI and Southbound Trading, CICC expected that 24 companies will be included, including CR BEVERAGE (02460.HK), INNOSCIENCE (02577.HK), CITIC FAMC (02799.HK), WL DELICIOUS (09985.HK), MAO GEPING (01318.HK), SYNAGISTICS (02562.HK), XIAOCAIYUAN (00999.HK), HEALTHYWAY INC (02587.HK), GUOFUHEE (02582.HK), CIRRUS (02507.HK), DOBOT (02432.HK), FANGZHOU JIANKE (06086.HK), WANGUO GOLD GP (03939.HK), CALB (03931.HK), TS LINES (02510.HK), XUNFEIHEALTH (02506.HK), VIVA GOODS (00933.HK), BIOSTAR PHARM-B (02563.HK), RIMAG GROUP (02522.HK), REFIRE (02570.HK), TYK MEDICINES-B (02410.HK), DMALL (02586.HK) and MINIEYE (02431.HK).

In addition, BEKE-W (02423.HK) has returned to dual primary listing for Hong Kong stocks in mid-2022, and is now a large cap constituent of the HSCI.

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