Preview of Zhongjin Gang Stock Connect and Hang Seng Index Adjustment: POP MART (09992) and others expected to be included in the Hang Seng Index, with an estimated 19 companies expected to enter the Hong Kong Stock Connect.

2025822()98()BANKCOMM(03328)POP MART(09992)YUM CHINA(09987)XPENG-W(09868)HWORLD-S(01179)JD LOGISTICS(02618)INNOVENT BIO(01801) During this period, similar to MSCI index adjustments, some active funds still do not exclude the possibility of arbitrage operations based on the announcement of adjustments. However, passive funds will choose to adjust their positions on the trading day before the changes take effect (i.e. September 5) in order to minimize tracking errors to the greatest extent. At that time, trading of relevant stocks may experience "abnormal trading volume", especially towards the end of the trading day. CICC's main points are as follows: After the market closes on Friday, August 22, 2025, the Hang Seng Index Company will announce the results of the semi-annual review of the Hang Seng index series (with the review deadline as of June 30, 2025), which involves major flagship indices of the Hang Seng, state-owned enterprises, Hang Seng Technology, as well as Hang Seng Composite Index closely related to Hong Kong stocks. Since the semi-annual review usually brings significant changes, and passive funds tracking flagship indices have large AUM (according to Bloomberg and Wind statistics, the combined AUM of ETFs tracking the Hang Seng index, state-owned enterprises, and Hang Seng Technology indices is approximately $30.35 billion, $6.63 billion, and $26.12 billion, respectively), potential changes in constituent stocks and corresponding fund flows are worth paying attention to. Based on publicly available data, a preview of potential adjustments is provided below for investors' reference.