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on september 4, the hang seng index amended its rules to add a new fast-inclusion rule for the hong kong stock connect index, targeting securities that qualify for southbound trading through conversion from secondary listing to primary or dual primary listing.

this means that alibaba group, which just completed its dual primary listing in hong kong, china at the end of august, will become the first beneficiary of the rules and is expected to be quickly included in the hong kong stock connect index in the hang seng index series.

new quick inclusion rules

on september 4, the hang seng index amended its rules to add new rules for the rapid inclusion of the hong kong stock connect index, which will take immediate effect for securities that are eligible for southbound trading by converting from secondary listing to primary or dual primary listing.

new hong kong stock connect indices that are subject to rapid inclusion rules include:

hang seng hong kong stock connect index, hang seng china (hong kong listed) 25 index, hang seng hong kong stock connect artificial intelligence thematic index, hang seng hong kong stock connect china technology index, hang seng hong kong stock connect new economy index.

this clearly indicates that alibaba group, which just completed its dual primary listing on the new york stock exchange and the hong kong stock exchange at the end of august, will become the first beneficiary of the rules.

as long as alibaba's closing total market capitalization ranks among the top 10 among the existing constituent stocks on the first day of meeting the interconnection qualifications, it will be included in the index or otherwise stated in the next regular monthly adjustment.

inclusion in hong kong stock connect is just around the corner

when alibaba was listed in hong kong for the second time, its market capitalization and trading volume were always among the top three in hong kong stocks. after completing its dual primary listing in hong kong, its inclusion in the hong kong stock connect is just around the corner.

the hong kong stock connect rules require that securities must be listed on the hong kong stock exchange limited (hkex) and meet certain thresholds of market capitalization and liquidity. stocks also need to meet a certain free float market capitalization and meet listing time limits.

currently, the hong kong stock connect has become one of the main sources of funds for the hong kong stock market. there is almost no doubt that alibaba meets the qualifications for southbound interconnection. after being included in the hong kong stock connect in the future, it is expected to gain the favor of southbound funds, attract more investors from mainland china, and improve liquidity and valuation levels.

wind data shows that on september 4, 2024, the top three hong kong stock connect transaction volumes almost all exceeded 1 billion yuan.

the top three shanghai-hong kong stock connect (southbound) trading volumes are:

1. china national offshore oil corporation (00883), transaction volume of 1.821 billion yuan, net sale of 111 million yuan.

2. prosperity fund management (02800), transaction volume 1.545 billion yuan, net selling 1.520 billion yuan.

3. tencent holdings (00700), transaction volume of 1.117 billion yuan, net sale of 235 million yuan.

the top three shenzhen-hong kong stock connect (southbound) trading volumes are:

1. prosperity fund management (02800), turnover: rmb 2.208 billion, net selling: rmb 2.202 billion.

2. china national offshore oil corporation (00883), transaction volume of 1.42 billion yuan, net sale of 111 million yuan.

3. tencent holdings (00700), transaction volume of 963 million yuan, net sale of 235 million yuan.