SINGAPORE - Local firm Mirxes will be added to Hong Kong’s Hang Seng Composite Index (HSCI) on Sept 8, a move expected to boost its visibility and trading liquidity, and marking a rare win for a Singapore biotech company on the global stage.

The index, which includes Chinese heavyweights such as e-commerce giant Alibaba and electric vehicle maker BYD, covers about 95 per cent of the total market value of companies listed on the Hong Kong mainboard.

It differs from the blue chip Hang Seng Index, which includes the largest and most actively traded stocks in Hong Kong, with 85 constituents at present.

Mirxes’ inclusion on the HSCI is nevertheless expected to make its shares more attractive to a broader base of investors, including institutional funds and index-tracking exchange-traded funds.

The company’s shares will also be eligible for the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect schemes, which will give investors in mainland China access to the Hong Kong-listed stock.

“This opens up the company’s stock to a vast pool of investors in mainland China, providing access to a crucial new source of capital to support its long-term growth and innovation pipeline,” Mirxes said.

The firm joins the HSCI just over three months after

its May 15 debut on the Hong Kong Stock Exchange

.

“This inclusion validates our strategic choice to list in Hong Kong and reinforces our commitment to expanding our global investor footprint,” Mirxes co-founder and chief executive Zhou Lihan said.

Hang Seng Indexes Company said the latest quarterly review of its indexes, for the period ended June 30, will be implemented after the market closes on Sept 5 and take effect from Sept 8.

Mirxes will be one of 17 biotech stocks in the HSCI after the review.

Other companies to be added to the benchmark index include IFBH, a Thai coconut-water maker incorporated in Singapore that debuted on the Hong Kong mainboard in late June, and bubble tea chain Auntea Jenny, a Chinese milk‑tea franchisor that went public on the Hong Kong bourse on May 8.

Founded in 2014 as a spin-off from Singapore’s Agency for Science, Technology and Research (A*Star), Mirxes focuses on cancer detection technology . Its flagship product, GastroClear, is the world’s first blood-based detection panel for gastric cancer.

In 2020, Mirxes developed Singapore’s first Covid-19 polymerase chain reaction test kit, the Fortitude Kit, in collaboration with A*Star.

The firm has also introduced a lung cancer detection kit and is leading the world’s first large-scale clinical research project that will lead to the development of a multi-cancer early detection test that can screen for up to nine different cancers. 

Mr Nirgunan Tiruchelvam, head of consumer and internet at Aletheia Capital, said Mirxes’ inclusion on the HSCI is a boost for both the company and Singapore’s biotech sector.

“For Mirxes, the Hang Seng Composite Index offers far deeper liquidity than the Straits Times Index... For Singapore’s biotech industry, it shows that home-grown firms with scale and innovation have a pathway to be recognised and included in the index as well,” he said.

Mr Ooi Chee Keong, head of capital markets at Forvis Mazars in Singapore, said Mirxes’ entry into the index will elevate its visibility and credibility, while opening doors to global capital critical for scaling.

“In Singapore’s relatively small domestic market, companies cannot rely on local investors alone to grow,” said Mr Ooi.

“International exposure is essential. Being listed, whether on the Singapore Exchange (SGX), the Hong Kong Stock Exchange or Nasdaq, opens the door to institutional investors from funds to pension schemes and sovereign wealth funds, many of which can invest only in listed equities,” he said.

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Mr Ooi added that Mirxes’ decision to list in Hong Kong is “particularly noteworthy”, as the bourse provides access to a market with nearly 30 times the daily trading volume of the SGX, therefore offering far greater liquidity for a growing company.

“The Hong Kong Stock Exchange has also cultivated a specialised ecosystem for life sciences through its Chapter 18A listing rules, which cater specifically to pre-revenue biotech firms,” said Mr Ooi.

“Index inclusion brings Mirxes onto the radar of index-tracking funds, widening its reach even further.”

But Ms Edith Qian, Hong Kong and China equity strategist at CGS International, offered a different view.

She noted that Mirxes’ inclusion is unlikely to have a major impact, given that the HSCI attracts relatively little passive fund or ETF tracking.

“It is not regarded as a flagship index in Hong Kong. Inclusion in the Hang Seng Index or the Hang Seng Tech Index would be more significant, but Mirxes’ market capitalisation remains far too small for eligibility,” she said.

The company’s market capitalisation is HK$12.87 billion, or S$2.11 billion. Its shares were trading at around HK$46 per share on Sept 25, compared with its listing price of HK$23.30.