On September 8th, the Hong Kong Stock Connect list will be adjusted, and Huatai expects 19 stocks to be added
Huatai Securities expects that on September 8th, the Hong Kong Stock Connect list will be adjusted, with 19 stocks being added and 17 stocks being removed. The newly added stocks show significant excess returns from the announcement date to the effective date, while the removed stocks face capital outflows and poor performance. In addition, A+H listed stocks can be directly included in the Hong Kong Stock Connect after the price stabilization period ends. HAITIAN FLAV and SANHUA will be included in advance on July 17th and 21st, respectively
Huatai Securities:
As of June 30, the review period for the Hang Seng Composite Index has ended, and the adjustment list is expected to be announced after the market closes on August 22, 2025. All changes will be implemented after the market closes on September 5 (Friday) and will take effect from September 8 (Monday). At that time, the Shanghai and Shenzhen Stock Exchanges will adjust the scope of investable stocks for the Hong Kong Stock Connect accordingly. We expect 19 Hong Kong stocks may be included in the Hong Kong Stock Connect, while 17 stocks will be removed.
Looking back, **the newly included stocks have shown significant excess returns relative to the Hang Seng Index from the announcement date of the adjustment to the effective date (opening effective) (median/mean: 1.8%/5.2%). In contrast, the stocks that were removed faced capital outflows and significantly underperformed the market during the corresponding period (median/mean: -5.3%/-7.5%).
In addition, for A+H dual-listed stocks, their Hong Kong stocks can be included in the Hong Kong Stock Connect without waiting for regular adjustments, as soon as the price stabilization period ends (the price stabilization period for Hong Kong IPOs is usually 30 days, starting from the day after the public offering application deadline). Therefore, HAITIAN FLAV and SANHUA will be included in the Hong Kong Stock Connect earlier, on July 17 and July 21, respectively.
