Alibaba, Xiaomi To Become Part Of HSI

The compiler of the benchmark Hang Seng Index, said on Monday that it has given the green light for the likes of Alibaba, Xiaomi and Meituan Dianping to become part of the 50-year-old index.

The Hang Seng Indexes Company announced the rule change after the market closed, following an industry consultation.

Starting from August, companies from Greater China with a secondary listing in Hong Kong and those with two classes of shares carrying different voting rights will be eligible for inclusion to the key index.

But their weighting will be capped at 5 percent each, compared with the 10 percent cap on heavyweights such as HSBC.

Meanwhile the Securities and Futures Commission (SFC) said in a note that its CEO, Ashley Alder, has been given a three-year extension.

His new term will begin from October 1 this year. Alder was first appointed as the SFC’s head in 2011.