Hang Seng proposes sweeping overhaul of Hong Kong stock index: Report

The proposal comes as a wave of Chinese megacaps choose the financial hub as a preferred venue to sell shares

Hang Seng Indexes Co. is considering wide-ranging changes to Hong Kong’s stock benchmark that would dilute the influence of its largest companies.
 
The five proposals include maintaining “a certain number of constituents classified as Hong Kong companies,” according to a 16-page consultation paper released Tuesday.
 
Hang Seng is also considering increasing the number of companies to between 65 and 80, as well as capping weightings at 8 per cent and fast-tracking new listings. The index currently has 52 members with weights limited to 10 per cent.
 
The sweeping proposal comes amid significant changes within the city’s stock