(Yicai Global) May 7 -- The Hang Seng Index, a benchmark for the Hong Kong Stock Exchange, has once again removed Chinese technology firm Lenovo Group Ltd. from its list of constituent stocks after the company’s share price plunged 57 percent over five years.
CSPC Pharmaceutical Group Ltd. will replace the Beijing-based firm from June 4, Hang Seng Indexes Co. said in a statement on May 4. The median decline among companies dropped from the Hang Seng is 48 percent, according to Bloomberg calculations.
Lenovo listed in 1994 and originally made the Hang Seng in 2000, running for six years before getting the boot. It re-entered the index in March 2013 and has since been the poorest performer among Bloomberg’s list of 171 global tech stocks.
The company has been facing intense competition in its core sectors, personal computers and smart devices, which made up 72 percent of total revenue in its financial reports for the fiscal third quarter ending in December. The Hewlett-Packard Co. came out on top in the global PC market in 2017, the first time any firm had bested Lenovo since 2013, according to data from International Data Corp. and Gartner.
Lenovo is also struggling with its smartphone businesses. Last year, its global sales tallied just under 50 million, down 2 percent on the year to rank it eighth in the world with a market share of about 2 percent, data from market researcher Counterpoint shows. In 2014, combined with subsidiary Motorola Mobility, it ranked third with a 7.9-percent share.