The Hang Seng will be making major changes to ensure the index better reflects the range of firms listed in Hong Kong. The index will raise the number of constituents from 52 currently to 80 by mid-2022 with an eventual target of 100 companies. A stock’s weighting will also now be limited to 8% from 10%. Wong Chi Man, Head of Research at China Galaxy International, tells us the rationale for these changes and which companies stand to win or lose.

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