A housing complex by Chinese property developer Evergrande in Beijing. The indebted Evergrande has remitted the funds for a key interest payment that was due Sept. 23 — ahead of a 30-day grace period, Chinese state media Securities Times reported.
Noel Celis | AFP | Getty Images
Evergrande’s stock dipped 1.44% on Monday morning. Year to date, the stock has plunged more than 80%.
In place of Evergrande, Hang Seng is adding biopharmaceuticals firm Innovent Biologics to the China Enterprises index.
As for changes on the Hang Seng index, China Resources Beer and ENN Energy Holdings will be added to the index in addition to the inclusion of JD and Netease. The latest update increases the number of stocks under the main index to 64, from the current 60 stocks.
Shares of JD jumped nearly 2% on Monday morning, while Netease was up nearly 3%.
S&P Global Ratings said in a Monday note that JD’s business model is “well positioned” for China’s strained conditions.
“The online retailer is outperforming its peers in China during a resurgence of COVID cases in the country and faltering consumer sentiment amid a housing downturn,” S&P said.
“JD.com has also been investing heavily for years now in its logistics and supply chain infrastructure. This has given the entity better control over supply chains while its competitors were hit with outages,” the report said.
S&P Global Ratings expects JD’s revenue to jump more than 18% per year in the next 18 to 24 months.