China Resources Land tipped to join HSI

Property developer China Resources Land is the most likely addition to Hong Kong’s Hang Seng Index (HSI) should the index managers decide to shuffle the membership in their November review, Bloomberg reported. The move would give the company’s state-owned parent China Resources Holdings control over three members of the HSI, a level of influence matched only by Li Ka-shing’s Cheung Kong Holdings. China Resources Land has seen its share price double this year, propelling the company’s market capitalization to US$12.4 billion. Goldman Sachs and Nomura both note that, of the likely HSI candidates, the stock has the highest combined ranking in market value and turnover. China Resources Holdings, a state conglomerate with interests in sectors from retail and real estate to pharmaceuticals and infrastructure, was established by the Chinese Communist Party in 1938 as a trading agent. Its current HSI representatives are China Resources Enterprise and China Resources Power.