Core Viewpoint - The Hang Seng Index Company will announce the results of the 2025 Q4 index review on February 13, with changes effective from March 9, impacting liquidity and presenting new investment opportunities for investors [1]. Group 1: Stock Inclusion and Exclusion - Over 40 stocks are predicted to be included in the Hong Kong Stock Connect, while more than 20 stocks may be excluded due to insufficient market capitalization [1][2]. - The market capitalization threshold for inclusion in the Hang Seng Composite Index and Stock Connect is approximately HKD 9.307 billion, while the exclusion threshold is HKD 6.115 billion [2]. - A total of 43 companies meet the criteria for inclusion, with notable candidates including JD Industrial, Innovation Industries, and Dipo Technology [2]. Group 2: Market Dynamics and Structural Changes - The adjustment of Stock Connect targets is a complex system considering market capitalization, liquidity, and market structure, rather than a simple "market cap game" [3]. - Companies listed in both A and H shares can be added to Stock Connect without waiting for periodic adjustments, as seen with Naxin Microelectronics and Nanhua Futures [3]. - The adjustment mechanism includes two major adjustments in March and September, and two minor adjustments in June and December, with key dates for companies to meet criteria being June 30 and December 31 [2]. Group 3: Focus on New Economy and Technology Stocks - The potential inclusion list highlights a strong focus on new economy and technology stocks, including AI-related companies and biotech firms [4]. - The information technology sector leads with 15 potential inclusions, followed closely by the healthcare sector with 14, while traditional financial sectors see minimal additions [4]. - The distribution of potential inclusion stocks indicates a structural shift towards technology-driven industries, enhancing asset allocation options for mainland investors [4]. Group 4: Market Vitality and Attractiveness - The dynamic mechanism of Stock Connect enhances liquidity premiums for related industries and improves the overall representativeness and attractiveness of the Hong Kong market [5]. - Continuous expansion and precise adjustments of Stock Connect deepen the interconnectivity between mainland and Hong Kong capital markets, reinforcing Hong Kong's position as an international financial hub [6]. - The ongoing optimization of Stock Connect targets is expected to attract long-term capital and guide funds towards high-growth sectors, contributing to the structural upgrade of the Hong Kong market [6].

Core Viewpoint - The Hang Seng Index Company announced that it will reveal the results of the Hang Seng Index series review for the fourth quarter of 2025 on February 13, with changes to the constituent stocks effective from March 9 [2] Group 1: Index Review Announcement - The announcement pertains to the upcoming review of the Hang Seng Index series [2] - The review results will be disclosed on February 13, 2025 [2] - Changes to the constituent stocks will take effect on March 9, 2025 [2] Group 2: Eligible Companies - A total of 43 companies meet the inclusion criteria for the Hong Kong Stock Connect [2] - Companies with the highest market capitalization include JD Industrial, Innovation Industries, Dipo Technology, Le Comfort, InnoSilicon, Tudatong, and Woan Robotics [2]

Group 1 - The core announcement from the Hang Seng Index Company states that the results of the fourth quarter review for the Hang Seng Index series will be announced on February 13, 2025, with changes effective from March 9, 2025 [1][9] - Predictions indicate that over 40 stocks will be included in the Hong Kong Stock Connect, while more than 20 stocks may be removed due to insufficient market capitalization [1][9] - The adjustments to the Hong Kong Stock Connect not only affect the liquidity of related stocks but also present new investment opportunities for investors [1][9] Group 2 - A total of 43 companies meet the criteria for inclusion in the Hong Kong Stock Connect, with key players such as JD Industrial, Innovation Industry, and Dipo Technology leading in average market capitalization [3][11] - The market capitalization threshold for inclusion in the Hang Seng Composite Index and Hong Kong Stock Connect is approximately HKD 93.07 billion, while the threshold for removal is HKD 61.15 billion [3][11] - The adjustment mechanism for the Hong Kong Stock Connect operates on a quarterly basis, with two major adjustments in March and September, and two minor adjustments in June and December [3][11] Group 3 - The potential inclusion list highlights a strong focus on new economy and technology stocks, with significant representation from the information technology and healthcare sectors [5][14] - The information technology sector leads with 15 potential inclusions, followed closely by healthcare with 14, while traditional financial sectors see only 4 new potential stocks [5][14] - The dynamic adjustment mechanism of the Hong Kong Stock Connect is facilitating a structural shift towards new economy and technology-driven industries, enhancing asset allocation options for mainland investors [5][14] Group 4 - The ongoing expansion and precise adjustments of the Hong Kong Stock Connect are enhancing the overall representativeness and investment appeal of the Hong Kong market [6][15] - The adjustments are expected to attract long-term capital and improve asset quality, promoting deeper linkage between Hong Kong and A-share markets [6][15] - Predictions for the Hong Kong market in 2026 suggest a potential upward trend driven by global liquidity easing, continuous inflow of southbound funds, and the expansion of quality stock options [6][15]

Core Insights - The adjustment of Hong Kong Stock Connect (港股通) for the first batch of 2026 has been finalized, indicating a structural change in the Hong Kong stock market, with southbound funds playing a significant role in influencing stock liquidity and valuations [1] Group 1: Inclusion and Exclusion Criteria - The current inclusion threshold for Hong Kong Stock Connect has risen to 9.317 billion, while the exclusion threshold stands at 6.05 billion [2] - A total of 44 companies meet the inclusion criteria, while 24 companies face the risk of exclusion due to insufficient market capitalization [2][7] - Market capitalization and liquidity are the core indicators determining inclusion or exclusion [2] Group 2: Companies Meeting Inclusion Criteria - Among the 44 companies eligible for inclusion, the average market capitalization is 14.377 billion, with a median of 12.613 billion, indicating overall high quality [2] - The types of inclusion include 40 companies for standard inclusion, 2 for A+H inclusion, and 2 for dual-class share inclusion [2] Group 3: Companies Facing Exclusion Risk - The 24 companies at risk of exclusion have an average market capitalization of only 5.094 billion, all below the 6.05 billion threshold [7] - Notable companies facing exclusion include Youbao Online and Haotian International Construction [7] Group 4: Market Dynamics and Adjustment Mechanism - The adjustment of Hong Kong Stock Connect is based on a complex system that considers market capitalization, liquidity, and market structure [7] - The market capitalization threshold is dynamically adjusted based on the market capitalization distribution of the Hang Seng Composite Index [8] - The liquidity requirement is assessed through the trading volume turnover ratio, which varies based on the listing duration of the companies [10] Group 5: Adjustment Frequency and Fast Inclusion Mechanism - Adjustments to Hong Kong Stock Connect occur four times a year, with two major adjustments in March and September, and two minor adjustments in June and December [11] - New stocks can be included through a fast-track mechanism, with specific criteria for quarterly and special fast inclusion [12]

Group 1 - The Hong Kong Stock Connect securities list will be adjusted, with the addition of Wan Guo Gold Group, effective from December 9, 2025 [1]

Core Viewpoint - The removal of certain stocks from the Hong Kong Stock Connect list has led to significant declines in their share prices, indicating a negative market reaction to the index adjustments [1] Group 1: Stock Performance - Yisou Technology (02550) experienced a drop of 31.53%, trading at HKD 3.17 [1] - Meizhong Jiahe (02453) fell by 25.32%, with a price of HKD 3.54 [1] - Guancheng Watch and Jewelry (00256) decreased by 22.71%, now at HKD 0.228 [1] - Sipai Health (00314) saw a decline of 13.6%, trading at HKD 4.7 [1] Group 2: Market Announcement - The Shanghai Stock Exchange and Shenzhen Stock Exchange announced adjustments to the constituent stocks of the Hang Seng Composite Large, Mid, and Small Cap Indices, effective from September 8 [1] - A total of 20 stocks, including Yisou Technology, Meizhong Jiahe, Guancheng Watch and Jewelry, and Sipai Health, were removed from the Hong Kong Stock Connect eligible securities list [1]

Core Viewpoint - The Shenzhen Stock Exchange announced adjustments to the Hong Kong Stock Connect eligible securities list, effective from September 8, 2025, due to periodic changes in the Hang Seng Composite Large, Medium, and Small Cap Indices [1]. Group 1: Adjustments to the Eligible Securities List - The following companies are added to the Hong Kong Stock Connect eligible securities list: China Foods (00506), Boleton (01333), and Huiju Technology (01729) [1]. - Additional companies included in the adjustments are: Jin Jing New Energy (01783), Bi Gui Wang (02007), Kangnait Optical (02276), and others, totaling 20 companies added [2]. - Companies removed from the eligible securities list include: Crown City Watch and Jewelry (00256), Sipai Health (00314), and Café de Coral Group (00341), among others, totaling 15 companies removed [2][3].

Core Viewpoint - The Shenzhen Stock Exchange announced adjustments to the sample stocks of major indices including the Shenzhen Component Index, ChiNext Index, and Shenzhen 100 Index, effective June 16, 2025, with a total of 20, 8, and 3 stocks being adjusted respectively [1][3]. Group 1: Shenzhen Component Index Adjustments - The Shenzhen Component Index will see 20 stocks added, including Zhongtung High-tech, Gansu Energy, Sichuan Jiuzhou, and others [4][5]. - Stocks being removed from the Shenzhen Component Index include Nanbo A, Tianmao Group, and others [5]. Group 2: ChiNext Index Adjustments - The ChiNext Index will add 8 stocks, such as BlueFocus and Changying Precision [6]. - Stocks being removed from the ChiNext Index include Anke Bio and Gangyan High-tech [6]. Group 3: Shenzhen 100 Index Adjustments - The Shenzhen 100 Index will add 3 stocks, including Lingyi Zhi Zao and Runze Technology [7]. - Stocks being removed from the Shenzhen 100 Index include TCL Zhonghuan and Nasda [7]. Group 4: Other Index Adjustments - The ChiNext 50 Index will add stocks like Robot and BlueFocus, while removing stocks such as Lepu Medical and Oriental Sunrise [7]. - The Shenzhen 50 Index and Shenzhen Main Board 50 Index also underwent adjustments, with various stocks being added and removed [12]. Group 5: Hong Kong Stock Connect Adjustments - The Hong Kong Stock Connect also saw adjustments, with changes to the eligible securities list effective June 3, 2025, including the addition of Fuzhikang Group and Junda Shares [9].

Group 1 - Shandong Molong's stock price surged over 200%, reaching a peak of 5.25 HKD per share following the announcement of its inclusion in the Hong Kong Stock Connect program [2] - The Shenzhen Stock Exchange announced the adjustment of the Hong Kong Stock Connect eligible securities list, effective from May 6, 2025, due to the removal of other risk warnings on Shandong Molong's A-shares [2][5] - Shandong Molong's A-shares also performed well, hitting the daily limit up at 4.35 CNY per share after the removal of the risk warning and the change of its stock name from "ST Molong" to "Shandong Molong" [5] Group 2 - The inclusion in the Hong Kong Stock Connect is expected to improve liquidity and attract more mainland investors, potentially leading to increased capital inflows from passive funds [6] - Historical data indicates that stocks added to the Hong Kong Stock Connect often experience significant price movements, with a median excess return of 1.9% during the adjustment period [9]