Core Viewpoint - The Hang Seng Index will expand its constituent stocks from 85 to 88, with the changes effective from September 8, 2025, following a review by the Hang Seng Index Company [3][4]. Group 1: Index Changes - The Hang Seng Index will include three new stocks: China Telecom, JD Logistics, and Pop Mart [4][6]. - The Hang Seng Composite Index will also see an increase in constituent stocks from 502 to 504 [2][7]. - The Hang Seng China Enterprises Index will maintain 50 stocks, adding Pop Mart while removing Jitu Express [7]. Group 2: Market Performance - The Hong Kong stock market has shown relatively weak performance compared to the A-share market, with the Hang Seng Index rising by 0.27% this week [9]. - Notable stock performances include Anta Sports rising by 11.53% and NIO increasing by 27.75% [9]. - Southbound Stock Connect has shown strong interest in Hong Kong stocks, with net purchases exceeding HKD 50 billion on August 22, and a total of approximately HKD 900 billion in net purchases for August [10].

Group 1 - The Hang Seng Index will increase its constituent stocks from 85 to 88, adding China Telecom, JD Logistics, and Pop Mart [5][3] - The Hang Seng Composite Index will also expand from 502 to 504 constituent stocks [2] - The changes will take effect after the market closes on September 5, 2025, and will be implemented on September 8, 2025 [9][3] Group 2 - The Hang Seng China Enterprises Index will maintain 50 constituent stocks, adding Pop Mart and removing J&T Express [8] - The Hang Seng Biotechnology Index will decrease from 50 to 30 constituent stocks, adding InnoCare Pharma and removing 21 stocks including Hutchison China MediTech [8] - The Hang Seng Composite Index will see an addition of 24 stocks including China Foods, Hengrui Medicine, and Boleton, while 22 stocks will be removed [8] Group 3 - The Hong Kong stock market has shown relatively weak performance compared to the A-share market, with the Hang Seng Index rising by 0.27% this week [11] - Notable stock performance includes Anta Sports rising by 11.53% and several other stocks increasing over 5%, while some stocks like China Resources Power and Zijin Mining fell over 5% [11] - Southbound Stock Connect funds have shown strong interest in Hong Kong stocks, with net purchases exceeding HKD 50 billion on August 22, and cumulative net purchases of approximately HKD 900 billion in August [12]

Group 1 - The Hang Seng Index Company announced adjustments to the calculation methods of several indices, including the Hang Seng Hong Kong Stock Connect Innovative Drug Index, Hang Seng Innovative Drug Index, Hang Seng Biotechnology Index, and Hang Seng Hong Kong-US Biotechnology Index [1] - The adjustments aim to enhance the focus on pure innovative drug companies by excluding companies primarily engaged in the CXO industry, which includes Contract Research Organizations (CRO), Contract Manufacturing Organizations (CMO), and Contract Development and Manufacturing Organizations (CDMO) [2][4] - The changes will result in a more concentrated index composition, with the top five constituents of the Hang Seng Hong Kong Stock Connect Innovative Drug Index shifting to companies like Innovent Biologics, BeiGene, and others, while the previous weight of excluded companies was approximately 18.1% [3] Group 2 - The Hang Seng Biotechnology Index will see a reduction in the number of constituents from 50 to a fixed number of 30, along with new trading qualification requirements under the Stock Connect program [6] - The Hang Seng Hong Kong-US Biotechnology Index will also reduce its constituent count from 60 to a fixed number of 40, indicating a significant decrease in the number of stocks included [9] - The adjustments to the indices will take effect on June 30, 2025, with the changes in constituent stocks implemented on September 8, 2025 [9]

Group 1 - The Hang Seng Biotechnology Index will undergo updates in its calculation methodology, including new requirements for the Stock Connect trading eligibility and modifications to the selection criteria [1] - The number of constituent stocks in the Hang Seng Biotechnology Index will be fixed at 30 [1] - The listing history requirement will be removed, and a rapid inclusion mechanism will be introduced [1] Group 2 - The Hang Seng Hong Kong-US Biotechnology Index will also see updates, with the number of constituent stocks fixed at 40 [1]