Tsugami Machine Tool China (01651) is included in the Hang Seng Composite Index and is expected to become the Hong Kong Stock Exchange Standard

Zhitong Finance App learned that on August 21, 2026, Hang Seng Index Company announced the results of the Hang Seng Index series of quarterly reviews up to June 30, 2026. Among them, Tsugami Machine Tool China (01651) was included in the Hang Seng Composite Index. Changes in the Hang Seng Composite Index will be implemented after the market closes on September 4 (Friday) and will take effect on September 7 (Monday). At that time, the Shanghai and Shenzhen Stock Exchange will adjust the scope of investment targets of Hong Kong Stock Connect accordingly. Tsugami Machine Tool China may be transferred to the Hong Kong Stock Connect because it meets a range of standards including market value and liquidity.

Citi recently released a research report stating that it covered Tsugami Machine Tool China (01651) for the first time, giving it a “buy/high risk” rating. The target price is HK$72, which is expected to benefit from strong growth in capital expenditure in the electronics and AI liquid cooling industry. Together, these two major sectors account for about 40% of new orders, surpassing the automotive industry by less than 30%. Furthermore, humanoid robots in this industry may become the next major driving force, with orders currently contributing only about 2%. In addition, the stock is expected to be included in the Hong Kong Stock Connect, and it may also become a positive catalyst in the short term.