Reshuffle may see Minsheng join HSCEI

HONG KONG: China Minsheng Banking Corp may be among companies added to Hong Kong's Hang Seng China Enterprise Index (HSCEI) in a reshuffle that will see the gauge's overall membership reduced to 40 companies, Nomura Holdings Inc and BNP Paribas SA said.

Hang Seng Indexes announced in November that it was revising the criteria for inclusion in many of its gauges. While the membership of the benchmark Hang Seng Index should remain unchanged, the changes to the China Enterprises Index, which tracks H shares of Hong Kong-listed mainland companies, will result in significant changes, the brokerages said.

"The impact on the HSCEI is more substantial, as the announced changes comprise both areas of index design, including calculation methodology, and the stock selection criteria," said Nomura analysts led by Sandy Lee. "By applying the new methodology, we estimate there are six potential additions and 10 potential deletions."