Wednesday, November 7, 2007

Hong Kong's HSI Services adds three new constituents to Hang Sang Index

HONG KONG (Thomson Financial) - HSI Services Ltd, which compiles the Hang Seng indexes, said it is adding PetroChina Co Ltd, China Shenhua Energy and China Overseas Land & Investments to the benchmark Hang Seng index from December 10.

With the new additions, the number of constituents on the Hang Seng Index will rise to 43.

Investors were expecting PetroChina, China's largest oil producer and the world's biggest company, to be added to the index this month.

China Shenhua is the largest coal producer in the country while China Overseas Land is a major property developer on the mainland.

PetroChina and China Shenhua listed on the Shanghai Stock Exchange recently, with the oil company raising 8.9 billion US from its initial public offering.

PetroChina overtook China Shenhua as having launched the world's biggest IPO by selling 4 billion A-shares in October.

PetroChina will have a weighting of 5.84 percent on the index, higher than rival CNOOC's 3.52 percent. China Shenhua will have a weighting of 2.39 percent, while China Overseas will be third biggest property stock on the HSI with a weighting of 1.07 percent.

HSI Services added Bank of Communications, China's fifth largest lender by assets, to the main index in September.