Date
22 January 2018
Tencent Holdings, Ping An Insurance and Geely Auto are among the best performers on the Hang Seng Index. Photos: Bloomberg, Reuters
Tencent Holdings, Ping An Insurance and Geely Auto are among the best performers on the Hang Seng Index. Photos: Bloomberg, Reuters

Hang Seng or Tencent Index?

The festive season is upon us, and Santa Claus has stuffed our Christmas stockings with bulging goodies, that is, in the form of pension investment and stock portfolio returns. Mind you, the best ones are from China, not Hong Kong.

The gift from HSBC (00005.HK) is not bad, nor are those from its smaller rivals. Most property counters are also doing good. But all of them are trailing far behind their mainland counterparts.

Three mainland companies are among the best performers, leading the happy upsurge of the blue-chip index. They are Tencent Holdings (00700.HK), Ping An Insurance (02318.HK) – both produced a return of over 100 percent – and Geely Auto (00175.HK), which had an even more spectacular showing of 250 percent after getting admitted to the Hang Seng Index earlier this year.

These three counters are the leaders in their respective sectors. Tencent is the new economy leader and the biggest in market capitalization, Ping An is the biggest among Chinese private enterprises and sixth largest stock in Hong Kong, while Geely Auto is the 28th largest stock, having reinvented itself as a leading car group after taking over Volvo.

Their popularity is reflected not just in turnover; they also regularly show up on the list of the 10 most active stocks on the local market. The trio are also among top 10 searches of investors looking for information on the internet.

In the four weeks to Dec. 10, Tencent topped a list of investor searches compiled by Wisers Information Portal, which tracked 300 investment columns in 14 major local newspapers in a big data research project with the Hong Kong Economic Journal.

Tencent got 81 searches, followed by Ping An, which had 40 searches and Geely with 32 searches.

Little wonder there were suggestions that Hang Seng Index should be renamed “Tencent Index”, given that half of the nearly 6,000 points gained by the blue-chip index were contributed by none other than the biggest and hottest stock this year.

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CG

EJ Insight writer

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