According to the news app "Zhijun Finance", CICC has released a research report stating that after the close on August 16, Hang Seng Index Company will announce the results of the mid-year review of the Hang Seng Index Series, involving major Hong Kong stock flagship indices such as Hang Seng Index, HSTECH and state-owned enterprises, as well as Hang Seng Composite Index, which is closely related to the Hong Kong stock investment scope. In terms of potential adjustment candidates, based on the Hang Seng Index adjustment method and the understanding and verification of non-quantitative adjustment standards through multiple actual adjustment results before, CICC estimates that Innovent Bio (01801), Xpeng Inc - W (09868), JD Logistics (02618), Want Want China Holdings Ltd (00151), Miniso Group Holding Ltd (09896) and Kuaishou Technology - W (01024) are among the front runners of the Hang Seng Index, and may become potential candidates for inclusion.

CICC pointed out that historical experience shows that there may be large deviations between the actual results and the screening based on ranking. The main reasons may be that some factors used as decision-making basis for index consulting committees, such as the representation of industries and listed locations, are not detailed or quantified, and other non-quantitative factors may also affect the final decision.

Regarding the adjustment of the Hong Kong Stock Connect and the Hang Seng Composite Index, CICC predicts that 25 companies are expected to be included in the Hong Kong Stock Connect, and 33 companies may be removed. Since the Hang Seng Composite Index is the sample space for Hong Kong Stock Connect investment, its changes will directly affect the investment scope of Hong Kong Stock Connect, which is worth paying attention to. It is estimated that there are 25 stocks that meet the standards for inclusion in Hong Kong Stock Connect this time, including Global Fortune Land Development Co Ltd (02556), QUANTUMPH-P (Shenzhen JingTong Technology Group Co Ltd) (02228), CHA OILS & FATS INTERNATIONAL CO LTD (02555), Qudian Inc (00917), Autohome Inc (02443), Tianli Holdings Group Ltd (01773), Sunshine Insurance Group Corporation Ltd (06963), Zhixin Auto Technology Co Ltd (01274), Da Shi Group Holdings Ltd (01405), Mongolian Mining Corporation (00975), S.F. Holding Co Ltd (09699), China National Accord Medicines Corporation Ltd (02453), Zongqing Rentai Agriculture & Technology Co Ltd (01855), Dalipal Holdings Ltd (01921), Hao Tian International Construction Investment Group Ltd (01341), Lao Pu Gold Mines (06181), Sunpower Group Ltd (02459), Sinopec SEG International Engineering Co Ltd (02386), DL Holdings Group Ltd (01709), Dekang Agriculture Machinery International Inc (02419), Yisou Technologies Group Co Ltd (02550), China Chuanglian Education Financial Group Ltd (03931), Jiangnan Group Ltd (03306), Hec Cj Pharm Co., Ltd. (01558) and Alibaba Group Holding Ltd-SW (09988).

It is worth noting that according to the financial report released by Alibaba Group Holding Ltd-SW (09988) on May 14 this year, the company is expected to complete the conversion from secondary listing to dual primary listing by the end of August this year. Considering that the company has already met other requirements for inclusion in the Hong Kong Stock Connect, such as being listed for more than 6 months and 20 trading days (listed on November 26, 2019); as a weighted voting right company, the average daily market value for the 183 days before the examination day is not less than HKD 20 billion and the turnover is not less than HKD 6 billion. Therefore, if the company successfully completes the dual primary listing conversion at the end of August this year, it is expected to catch up with the Hong Kong Stock Connect examination day on September 5 and be included in the adjustment around September 9 this round. However, CICC reminded that there is a risk of not being included if the conversion to dual primary listing is not achieved.