Dow Jones Newswires: SenseTime, Lenovo shares jump after inclusion into Hang Seng indexes
Shares of artificial-intelligence company SenseTime Group Inc. and computer maker Lenovo Group Ltd. jumped Monday morning, as investors welcomed the stocks’ inclusion into two key Hang Seng indexes.
Both companies gained as much as 11% within an hour of trading.
On Friday, index compiler Hang Seng Indexes Co. added SenseTime
to the Hang Seng TECH Index, a relatively new benchmark launched in 2020. The index operator also added Lenovo
already a constituent of the Hang Seng TECH Index, into the flagship Hang Seng Index.
The changes were part of an ongoing major overhaul for the Hang Seng Index that began in early 2021. The index compiler has been seeking to expand the coverage scope of the index and to give more weight to fast-growing technology stocks, after a period of underperformance by the Hang Seng Index compared with global and regional peers.
Hang Seng Indexes has said it would eventually broaden the Hang Seng Index, which now tracks over 60 stocks, to include up to 100 companies.
The other new addition to the Hang Seng Index was bottled-water company Nongfu Spring Co.
which opened 1.9% higher before erasing gains. The stock was last down 1.4%.
Chinese electric-car makers XPeng Inc.
and Li Auto Inc.
also made their way into the Hang Seng TECH Index. Xpeng shares were down 2.9%, while Li Auto edged up 0.4%.