The Strongest of the Year Emerges, Enters the Hang Seng Composite Index
On [specific date], Hang Seng Indexes Company Limited, based on market analysis, reconstituted the composition of the Hang Seng Index. CITIC Financial Asset Management Co., Ltd. (China CITIC Financial Asset Management Co., Ltd.) became a constituent of the Hang Seng Composite Index, attracting widespread attention from various sectors.
Strongest performance of the year
On the previous date, China CITIC Financial Asset Management released an "Earnings Forecast." The "Earnings Forecast" stated that the annual operating performance of China CITIC Financial Asset Management had shown significant growth—"the net profit attributable to the company's shareholders for the year is expected to be between RMB X billion and RMB Y billion, representing a year-on-year increase of A% to B% compared to the RMB Z billion in the previous year."
Why is the growth so strong? The general explanation from CITIC Financial Asset is as follows: 1. The capital market has fully rebounded. With the market recovery, CITIC Financial Asset has capitalized on the trend, leading to a natural increase in asset returns. 2. With the support of the group system, CITIC Financial Asset has achieved upgrades and optimizations. Its industry layout has improved, asset quality has significantly enhanced, and risk resilience has strengthened.
CITIC Financial Asset’s explanation was a bit understated, akin to an athlete winning a championship and saying, “It’s mainly thanks to everyone’s support, and I performed quite well…” In contrast, the annual performance reports of the other three major AMCs (China Cinda, China Orient Asset Management, and China Great Wall Asset Management), once peers of CITIC Financial Asset, pale in comparison.
China Orient Asset Management and China Great Wall Asset Management have not yet released their full-year results. As of the quarterly report on [specific date], China Orient Asset Management reported a net profit attributable to the parent company of [specific amount] billion yuan, a year-on-year increase of [specific percentage]%. While this performance is not as strong as that of CITIC Financial Asset Management, it is relatively decent for the company itself. Meanwhile, China Great Wall Asset Management's interim report for [specific year] showed that as of [specific date], the net profit attributable to the parent company was [specific amount] billion yuan, a year-on-year decline of [specific percentage]%.
China Cinda issued a "Profit Warning" on [Month Day], forecasting that the group's net profit attributable to parent company shareholders for the year would decline by approximately % to % compared to the same period last year. The reasons provided by China Cinda for this downturn are roughly as follows: 1. The company is undergoing structural adjustments. 2. There are historical risks that need to be addressed. 3. The scale of non-performing assets held and related income have temporarily decreased. 4. Certain real estate investments have had an impact. 5. Market conditions have affected some investment returns.
At first glance, China Cinda seems to live in a different season from CITIC Financial Asset. Put another way, CITIC Financial Asset was the first among the major firms to reform from the old structure and integrate into the CITIC Group, thus gaining the earliest momentum to soar with the trend. This also indirectly proves the necessity and possibility of being consolidated under Central Huijin to reshape the landscape.
Being included in the Hang Seng Composite Index components also indicates that the quality of CITIC Financial Assets, as reflected in the mid-year, has been recognized by the research of Hang Seng Indexes Company Limited in Hong Kong.
The significance of the Hang Seng Composite Index
The Hang Seng Index was established on [specific date] at the initiative of Dr. Lee Quo-wei, the former chairman of Hang Seng Bank. Hang Seng Bank was founded on [specific date], and accordingly, the index initially selected [specific number] representative constituent stocks. Originally, the Hang Seng Index was intended for internal reference only. Over time, with the development of the Hong Kong stock market, it has become a symbol of the Hong Kong stock exchange. The Hang Seng Index has also undergone expansions and introduced various series of indices with different significances. Today, when referring to the Hong Kong Hang Seng Index, it could specifically denote the foundational Hang Seng Index or broadly represent the entire Hang Seng Index series. *Note: Please replace [specific date] and [specific number] with the accurate historical dates and figures as needed, as they were not provided in the original text.*
In the year, Hang Seng Indexes Company Limited was established. As a wholly-owned subsidiary of Hang Seng Bank, the company is responsible for compiling and managing the Hang Seng Index Series. Therefore, the Hang Seng Index we see today comes from Hang Seng Indexes Company Limited. As the most fundamental index, the Hang Seng Index has maintained the characteristics of a Hong Kong blue-chip stock index, with the number of constituent stocks expanding from a few to several dozen, then to more, and up to the current number. According to the plan, the number of Hang Seng Index constituent stocks will increase to a certain number in the future.
CITIC Financial Assets was included in the Hang Seng Composite Index, which was established on [specific date]. The Hang Seng Composite Index initially comprised the top [number] listed companies by market capitalization in Hong Kong (at that time, the Hang Seng Index consisted of [number] constituents), representing [percentage]% of the total market capitalization of companies listed on the Hong Kong Stock Exchange. It replaced the Hang Seng Index, which was established on [specific date]. By [year], the number of constituents in the Hang Seng Composite Index had expanded to [number] (a reduction of [number] from [number] in [year]). *Note: Please replace the placeholders like [specific date], [number], [percentage], and [year] with the accurate figures from the original text for a complete translation.*
Simply put, the Hang Seng Index represents the most influential leading enterprises in the Hong Kong stock market. The Hang Seng Composite Index, on the other hand, has broader market representation. As of [date], the total number of listed stocks on the Hong Kong Stock Exchange was [number], including [number] companies listed on the Main Board and [number] on the Growth Enterprise Market. The Hang Seng Composite Index's [number] constituent stocks cover [percentage]% of the market capitalization of companies listed on the Main Board of the Hong Kong Stock Exchange, encompassing large, medium, and some small companies, making it more reflective of the overall market.
The Hang Seng Index in Hong Kong undergoes quarterly reviews and adjustments, typically in the months of [specific months to be filled in] each year. The purpose is to ensure that the index can promptly reflect the performance of both the market and the companies. In [specific year to be filled in], the Hang Seng Composite Index added [specific number] companies while removing [specific number] companies, demonstrating its stringent requirements for constituent stocks to meet market standards.
CITIC Financial Assets' inclusion in the Hang Seng Composite Index signifies that it has met the Hang Seng Indexes Company's comprehensive evaluation criteria, including market capitalization, liquidity, financial performance, industry representation, compliance governance, and market recognition. This is a positive incentive for the company and also serves as an encouragement for the non-performing assets industry.
The adjustment of the constituent stocks of the Hang Seng Index is as follows
The number of Hang Seng Index constituent stocks remains unchanged.
The number of constituents in the Hang Seng China Enterprises Index remains unchanged. Added: ZTO Express (Cayman) Inc., BeiGene, Ltd. Removed: Sino Biopharmaceutical Limited, Li Ning Company Limited.
The number of constituents in the Hang Seng Tech Index remains unchanged. Added: Tencent Music Entertainment Group, Horizon Robotics. Removed: East Buy Holding Limited, ZhongAn Online P&C Insurance Co., Ltd.
The number of constituents in the Hang Seng Biotechnology Index remains unchanged. Added: Lifetech Scientific Corp. Removed: ImmuneOnco Biopharmaceuticals (Shanghai) Co., Ltd.
The number of constituents in the Hang Seng Composite Index was reduced from [original number] to [new number]. (Note: The original text contains placeholders "[original number]" and "[new number]" which should be replaced with the actual figures for a complete translation.)
Join (Only): Great Eagle Holdings Limited China Travel International Investment Hong Kong Limited First Capital Holdings Limited Xiaocaiyuan International Holdings Limited Mogao Cosmetics Co., Ltd. Crystal International Group Limited Zhejiang Tongyuankang Pharmaceutical Co., Ltd. Shenzhen Youjia Innovation Technology Co., Ltd. Shenzhen Yuejiang Technology Co., Ltd. China Resources Beverage (Holdings) Limited iFlytek Medical Technology Co., Ltd. Cirrus Aircraft Corporation TS Lines Limited Jiangxi Yimai Sunshine Group Co., Ltd. Lionhead Holdings Limited Beijing Huahao Zhongtian Biological Medicine Co., Ltd. Shanghai Refire Group Co., Ltd. Innoscience (Suzhou) Technology Co., Ltd. Jiangsu Guofu Hydrogen Energy Equipment and Technology Co., Ltd. Duodian Digital Intelligence Co., Ltd. Healthy Road Co., Ltd. Champion REIT China CITIC Financial Asset Management Co., Ltd. CALB Group Co., Ltd. International Gold Corporation Limited Ark Health Cloud Holdings Limited Lufax Holding Ltd Horizon Robotics Weilong Delicious Global Holdings Ltd
Exclude (only): LVGEM (China) Real Estate Investment Company Limited Sinopec Shanghai Petrochemical Company Limited Chow Tai Fook Jewellery Group Limited Asia Cement (China) Holdings Corporation Value Partners Group Limited CIFI Holdings (Group) Co. Ltd. Dream Technology Holdings Limited China MeiDong Auto Holdings Limited Shanghai Fudan Microelectronics Group Company Limited Kingkey Financial International (Holdings) Limited ImmuneOnco Biopharmaceuticals (Shanghai) Inc. Tian Lun Gas Holdings Limited Xinte Energy Co., Ltd. Marco Holdings Limited Laekna Therapeutics Limited AInnovation Technology Group Limited Nayuki Holdings Limited CARsgen Therapeutics Holdings Limited Zhihu Inc. Gaush Meditech Ltd. Shenzhen Pagoda Industrial (Group) Corporation Limited CUTIS Pharma Limited Hepion Pharmaceuticals Texhong Textile Group Limited C-MER Eye Care Holdings Limited Hangzhou Tigermed Consulting Co., Ltd. Agile Group Holdings Limited China Yongda Automobiles Services Holdings Limited Pharmaron Beijing Co., Ltd. Arrail Group Limited AIM Vaccine Co., Ltd. Star CM Holdings Limited Ferretti S.p.A. Beisen Holding Limited Helen's International Holdings Limited Linklogis Inc. Alphamab Oncology RemeGen Co., Ltd. Peijia Medical Limited
All changes will be implemented after the market closes on [date], Friday, and will take effect from [date], Monday.
