Sands China Ltd. (1928), the Hong Kong-listed unit of billionaire Sheldon Adelson’s Las Vegas-based company, will be added to the Hang Seng Index effective June 4.
The total number of constituents of Hong Kong’s stock benchmark will increase to 49 with the addition, Hang Seng Indexes Co., the index provider, said in an e-mailed statement yesterday. New China Life Insurance Co. (1336), a Beijing-based life insurer, will be added to the Hang Seng China Enterprises Index of Chinese companies, while China Railway Construction Corp. will be removed, Hang Seng said.
The changes may impact share prices, as index-tracked funds, including the Hang Seng Index Exchange-Traded Fund (2833) with a total asset value of HK$30.5 billion ($4 billion), adjust their holdings. The Hang Seng Index (HSI) is down 2.7 percent since its last quarterly review on Feb. 10, when no changes were announced.
Sands China shares fell 0.9 percent to HK$28.45 in Hong Kong yesterday, before the announcement, giving the company a market value of HK$229 billion ($29.5 billion), according to data compiled by Bloomberg.
The American depositary receipts of Sands China gained 2.8 percent to $38.10 in U.S over-the-counter trading at 1:47 p.m. in New York. Each ADR represents 10 underlying common shares.
The company said on May 9 that first-quarter net income gained 6.4 percent from a year earlier to $279.3 million, as net revenues gained 25 percent to $1.45 billion
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