What has proposed to change in HSI has changed, and swift…
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A good and representative market index reflects the strength of an international financial centre.
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HSI performance has lagged major indices in other key markets including the US, Japan and China. One key reason is the over-concentration of old economy stocks in financial and property sectors amongst the HSI constituents.
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The latest revamp in the HSI constituents would enhance the underlying strength of the HK stock market with the growing importance of China companies and their earnings stream going forward.
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Turnover velocity has accelerated since the launch of Stock Connect and increasing number of secondary-listing of ADR and Chinese centric stocks would further enhance both market turnover and sentiment in 2021.
