The largest logistics company in the Hong Kong Exchange will be added to Hang Seng Composite LargeCap & MidCap Index in December. Investors reacted positively to the news.
According to the third quarterly reconstitution result from the Hang Seng Indexes Company, Hang Seng Indexes plans to add ZTO Express as a component stock on December 7, 2020. Since ZTO Express belongs to Hang Seng Composite LargeCap & MidCap Index, it also indicates the company will join the Shanghai-Hong Kong Stock Connect, which means China mainland investors can access the stock.
ZTO Express (2057:HK) went to IPO on the Hong Kong Exchange on September 29, 2020, and it became the first express company that lists shares in both Hong Kong and New York. ZTO Express also has the largest market capitalization in the Hong Kong Exchange logistics sector. By the close of business on November 16, 2020, the price was HKD 252.6 and its market capitalization had reached HKD 217 billion.
According to the H1 2020 report of the company, its market shares increased from 19.1% to 20.6% and its daily average delivery reached 38.32 million. The company maintains its leading position. One of the largest private funds in China, Greenwoods Asset Management, bought five million shares of ZTO Express in the third quarter of 2020 – this also shows the confidence from investors about the company.