Alibaba, Xiaomi to join Hong Kong's Hang Seng Index

Slideshow ( 2 images )

HONG KONG (Reuters) - E-commerce conglomerate Alibaba 9988.HKBABA.N, handset maker Xiaomi 1810.HK and WuXi Biologics 2269.HK will enter the Hang Seng .HSI next month, broadening Hong Kong's traditionally financial services-dominated index.

The change announced by the Hang Seng Indexes Company on Friday was made possible after the 50-year-old benchmark’s publisher changed the rules on shareholder structure and secondary listings in May.

China’s largest financial hubs are revamping key indexes to give more weight to internet companies, which are increasingly important to its economy.

Alibaba and Xiaomi, along with delivery platform Meituan Dianping 3690.HK, will also join the 'H-share' Hang Seng China Enterprises Index .HSCE, which represents Chinese companies listed in the city.

Changes to both indexes are effective September 7.

About $19.7 billion of assets under management in exchange-traded products were linked to the Hang Seng Index with another $5.4 billion tied to the H-share index as of July, the index provider said.

The Hang Seng Index will drop Sino Land 0083.HK, Want Want China 0151.HK and China Shenhua Energy 1088.HK, while Sinopharm 1099.HK, BYD 1211.HK and Citic Securities 6030.HK will leave the H-share index.

Reporting by Twinnie Siu; writing by Noah Sin; Editing by Jason Neely and Alexander Smith