According to CICC, Nio is expected to be included in Hong Kong’s Hang Seng Index

• According to CICC, ETFs tracking the Hang Seng Index currently total approximately $27.53 billion.
• Nio has been included in the Hang Seng Composite Index and the Hang Seng Technology Index since 2022.

Nio (NYSE: NIO, HKG: 9866) is expected to be included in another Hong Kong stock index, which will allow the company to receive some passive investment inflows despite the weak performance of its shares.

Hang Seng Indexes Company Limited (HSI) will announce the results of its semi-annual review of the Hang Seng index family after the close of trading on Friday, February 21, and formally implement the adjustments on Monday, March 10, Chinese broker CICC said today in a note.

The adjustment will affect major flagship indices such as the Hang Seng Index, the Hang Seng China Enterprises Index, the Hang Seng Tech Index and the Hang Seng Composite Index, analyst Liu Gang’s team said.

When adjusting the Hang Seng Index, Nio is most likely to be included, followed by JD Logistics, Innovent Bio and Pop Mart, the team said.

The team said its calculations focused on market capitalization, followed by other factors including the companies’ positions in their industries.

However, it should be noted that history suggests that actual results may vary, as Innovent Bio and JD Logistics, for example, were ranked highly in past forecasts but were ultimately left out, the team noted.

Since the semi-annual deliberations tend to be very different and the size of the passive funds that track the flagship index is large, it is worth keeping an eye on possible changes in the components as well as the flows of funds, the team says.

The current size of ETFs tracking the Hang Seng Index is approximately $27.53 billion, the Hang Seng China Enterprises Index is approximately $5.41 billion, and the Hang Seng Tech Index is approximately $18.66 billion. Dollar, as the team’s calculations based on data from Bloomberg and Wind show.

Nio listed on March 10, 2022 in Hong Kong as a secondary listing under the ticker symbol 9866, trading in blocks of 10 Class A common shares.

On May 20, 2022, HSI announced the results of its quarterly review and Nio was added to the Hang Seng Composite Index and the Hang Seng Technology Index effective approximately one month later, on June 13.

The Hang Seng Index is one of the earliest stock market indices in Hong Kong. Launched on November 24, 1969, it is the main index reflecting the performance of the Hong Kong stock market.

The Hang Seng Composite Index was established on October 3, 2001 and covers the top 95 percent of the total market capitalization of securities listed on the Hong Kong Stock Exchange.

Nio shares performed weakly in 2024, losing about 53 percent in Hong Kong for the full year. The Hang Seng Index rose about 18 percent in 2024 and the Hang Seng Composite Index rose about 16 percent.

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