Changes in Hong Kong stocks | Tsugami Machine Tool China (01651) rose more than 4% at the end of the session. The company entered the Hang Seng Composite Index Citi Index, and Citi indicated that it may become a positive catalyst for the short term

The Zhitong Finance App learned that Tsugami Machine Tool China (01651) rose more than 4% at the end of the session. As of press release, it had risen 4.4% to HK$52.2, with a turnover of HK$786.15 million.

According to the news, Hang Seng Index Company announced the quarterly review results. Among them, Jinshang Machine Tool China 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 is likely to 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 saying that it covered Tsugami Machine Tool China for the first time and gave it a “buy” rating. The target price is HK$72. It 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.