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Lenovo to be dropped from benchmark Hang Seng Index

The Hang Seng Indexes Company will exclude the shares of Lenovo Group Ltd. from Hong Kong’s benchmark stock gauge due to a sharp slump in shares in recent years.

Lenovo has tumbled 57 percent since it was added to the gauge in 2013 to lose $5.9 billion in value. Removal from the benchmark could trigger more outflows from Lenovo, as at least $107 billion worth of passive funds track the Hang Seng Index, Bloomberg reported.

Lenovo shares will be excluded from the index on June 4 and will be replaced by China-based CSPC Pharmaceutical Group Ltd. Shares in the Chinese drugmaker have risen 29 percent this year, among the best-performing healthcare firms in Asia.

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