Lenovo Group joined the Hong Kong Hang Seng Index in March 2013. In the past five years, Lenovo's share price has fallen by 56% and its market value has lost US$5.8 billion. Bloomberg’s data shows that the stocks that were kicked out of the Hang Seng Index during the past 10 years Prior to being disqualified, the stock price fell an average of 48%.
According to Kenny Wen, strategist at Everbright Sun Hung Kai Co. Ltd., Hong Kong’s leading financial institution, “The likelihood of Lenovo being kicked out of the Hang Seng Index is growing. In all core areas, including smartphones and PC markets , Lenovo Group faces challenges. Short sellers may have chosen the right target this time.
Previously, Lenovo Group had been kicked out of the Hang Seng Index. In 2000, Lenovo Group joined the Hang Seng Index for the first time. In 2006, Legend Group was kicked out of the Hang Seng Index. In March 2013, Lenovo Group once again joined the Hang Seng Index.
In this regard, Lenovo Group stated in an e-mail statement that it did not comment on the company's share price or market speculation. But last week, Lenovo Group CEO Yang Yuanqing once stated on WeChat that Lenovo Group is recovering.