HK Stock Market Move | TSUGAMI CHINA (01651) rose over 4% in the late trading session as the company enters the Hang Seng Composite Index. Citibank pointed out that this could become a short-term positive catalyst.

TSUGAMI CHINA (01651) surged over 4% in the last trading session. As of this report, it is up 4.4%, priced at HKD 52.2, with a trading volume of HKD 78.6015 million. In terms of news, the Hang Seng Index Company announced the results of its quarterly review, in which TSUGAMI CHINA has been included in the Hang Seng Composite Index. The changes to the Hang Seng Composite Index will be implemented after the market closes on September 4 (Friday) and will take effect from September 7 (Monday). Consequently, the Shanghai and Shenzhen Stock Exchanges will adjust the range of investable stocks for the Southbound Trading (Hong Kong Stock Connect) accordingly. TSUGAMI CHINA is likely to be added to the Hong Kong Stock Connect, as it meets a series of criteria, including market capitalization and liquidity. Citi recently released a research report initiating coverage of TSUGAMI CHINA with a "Buy" rating and a target price of HKD 72, predicting strong growth in capital expenditures in the electronics and AI liquid cooling industries. These two sectors together account for about 40% of new orders, surpassing the less than 30% share of the automotive industry. Additionally, the bank anticipates that the humanoid Siasun Robot & Automation may become the next significant DRIVE, currently contributing only about 2% of orders. Furthermore, the potential inclusion of this stock in the Hong Kong Stock Connect could also serve as a short-term positive catalyst.