Will Index Inclusion in HSCEI Change China Hongqiao Group's (SEHK:1378) Investment Narrative?

• In December 2025, China Hongqiao Group Limited was added to the Hang Seng China Enterprises Index, marking its inclusion among major Hong Kong–listed mainland enterprises.
• This index inclusion can broaden the company’s investor base as passive funds and benchmarked mandates adjust portfolios to reflect the new constituent.
• We will now explore how Hongqiao’s entry into the Hang Seng China Enterprises Index shapes its investment narrative and perceived market relevance.

The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

What Is China Hongqiao Group's Investment Narrative?

To own China Hongqiao today, you have to believe its strong profitability, high returns on equity and consistent dividends can be sustained in a cyclical aluminium market, even if revenue growth looks modest. The recent inclusion in the Hang Seng China Enterprises Index mostly affects sentiment and liquidity rather than the fundamentals that really matter in the near term, such as aluminium prices, raw material costs and the company’s execution on volume growth. That index change may keep trading activity elevated after a very large share price run, but it does not remove key risks around earnings cyclicality, capital intensity or potential dilution after the recent HK$11.68 billion follow on offering. In other words, the investment story has become more visible, not necessarily safer.

However, stronger index visibility also raises the stakes if aluminium markets turn against Hongqiao.
Despite retreating, China Hongqiao Group's shares might still be trading 30% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

Explore 3 other fair value estimates on China Hongqiao Group - why the stock might be worth as much as 44% more than the current price!

Build Your Own China Hongqiao Group Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your China Hongqiao Group research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free China Hongqiao Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate China Hongqiao Group's overall financial health at a glance.

No Opportunity In China Hongqiao Group?

Every day counts. These free picks are already gaining attention. See them before the crowd does:

• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.
• Rare earth metals are the new gold rush. Find out which 34 stocks are leading the charge.
• AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com