Lenovo's stock price has fallen by 57% since 2013, and its market value has decreased by 5 billion 900 million US dollars. With the continuous loss of market share in mobile services, the company has been struggling to revive its business. Removing from the Hang Seng index could lead to more capital escaping from the stock market. According to data compiled by Peng Bo, the scale of passive funds linked to hang seng index is at least $107 billion.
CICC analyst Qian Kai said that the stock was removed from the benchmark stock index, which was a huge psychological blow to investors, so the downward pressure on the stock may continue. Lenovo said in an email announcement that the company respects the decision made by the Hang Seng Index Company; the top priority of the company is the ongoing reform and transformation, with the aim of promoting long-term sustainable shareholder returns.
China has already indicated its support for the development of its medical industry, which is one of the reasons why the Shijiazhuang group has been selected as a constituent stock of the Hang Seng Index. As of last Friday, the stock rose 29% in the year, ranking among the best in Asia. Its drugs for the treatment of tumors and amyotrophic lateral sclerosis have been approved and approved by FDA in recent months. The value of the stock market is now up to $16 billion.