Hang Seng Index’s Big Makeover

The video discusses proposed changes to the Hang Seng Index, including maintaining a listing history requirement for new stocks, increasing the number of constituents, and adjusting weighting caps. It also addresses the importance of preserving the Hong Kong identity within the index, ensuring it remains distinct from other Chinese stock indices.

What was the proposal that received less support compared to others?

• Reducing the weighting cap to 8%

• Maintaining 20 to 25 Hong Kong firms in the index

• Removing the listing history requirement for new stocks

• Increasing the number of constituents

How will the weighting cap change affect heavyweight stocks like Tencent?

• Their weighting in the index will be reduced

• Their weighting in the index will remain the same

• Their weighting in the index will increase

• They will be removed from the index

What is the expected impact on Alibaba due to the proposed changes?

• Removal from the index

• No change in passive inflows

• Increase in passive inflows

• Decrease in passive inflows

What is the Hang Seng index's proposal to maintain its identity as a Hong Kong benchmark?

• Increase the number of Chinese firms

• Maintain 20 to 25 Hong Kong firms

• Reduce the number of Hong Kong firms

• Focus solely on mainland companies

What percentage of Hong Kong firms was in the HSI at the end of last year?

• 25%

• 42%

• 50%

• 60%