Hong Kong’s Hang Seng Index may add more stocks in healthcare, tech and logistics sectors in an upcoming quarterly review after including only one firm in May.

Chinese drugmaker Innovent Biologics Inc, chip packaging provider ASMPT Ltd, and container shipper Cosco Shipping Holdings Co are among the names touted by analysts as candidates to join the equity benchmark. Hang Seng Indexes Co announces the results on Friday. 

With no constituent changes in February and just a single addition in May, there’s expectation for more joiners this time around. The benchmark currently has 82 members, and the index compiler plans to expand the number to 100 and achieve a more balanced representation of industries. 

“Health care is still the only sector with less than 50% coverage in the index,” said Rebecca Sin, a Bloomberg Intelligence analyst. “BeiGene Ltd and Innovent Biologics could be two companies that are added to the index as they lead the weightings in Hang Seng Biotech index.”

China International Capital Corp.’s picks also include Innovent and Chinese EV maker XPeng Inc. 

The Hang Seng gauge has fluctuated after four straight years of losses, whipsawed by policy hopes and an uncertain Chinese economic outlook. After charging into a bull market earlier this year, the gauge has lost about 13% since its May peak. Sentiment has turned slightly more optimistic as the earnings season approaches and companies seek to boost dividends. 

Shipping firms like Cosco Shipping and clean energy-related companies like CMOC Group Ltd. also have a high likelihood of addition given the under-representation, said Janaghan Jeyakumar, an analyst who writes for independent research provider Smartkarma. 

“We also feel the index provider is making more room for IT names,” he said, citing ASMPT and VTech Holdings as top candidates for the category.

  - Bloomberg