On 10th August 2018, natural and organic name, L’Occitane International, announced it will feature on the Hang Seng Composite Index (HSCI) and the Hang Seng Consumer Goods and Services Index (HSCGSI).
The Hong Kong indexes
Placed on there by Hang Seng Indexes, the business defines foreign companies as those that are incorporated outside Greater China and have the majority of their business presence outside Greater China.
The ingredient-based cosmetics player, which also specialises in wellbeing products, will be placed on the two indexes from 10th September 2018.
The Hong-Kong based indexes is a free-float capitalisation-weighted index, comprised of a selection of companies from the Hong Kong Stock Exchange.
The HSCI is a Hong Kong market benchmark that focuses on approximately the top 95th percentile of the total company market capitalisation named on the Stock Exchange of Hong Kong's (SEHK) main board.
Pursuing L’Occitane's strategy
“We greatly welcome the inclusion of eligible foreign companies in these indices. Hong Kong has been a great listing home for L’Occitane, and this decision better reflects the city’s status as a global finance centre,” noted Reinold Geiger, Chairman and Chief Executive Officer of L’Occitane.
Commenting on how this new development marks a positive strategic step for the premium beauty market leader, Geiger added: “The Group’s inclusion in this widely benchmarked index represents the market’s recognition of our professionalism and financial stewardship, and places us within the investment universe of a larger number of institutional investors, which could drive further liquidity and visibility.”
L’Occitane International may not be the only global beauty company that makes its way onto the list as a consultation by Hang Seng Indexes now states that foreign companies with a primary listing in Hong Kong may feature for inclusion on the list. These will sit alongside stapled securities and Greater China weighted voting right companies.
A global leader in the premium beauty market and leveraging cutting-edge technology and marketing high-quality developments, L’Occitane produces its items under five brands, including L’Occitane en Provence, Melvita, Erborian, L’Occitane au Brésil and LimeLife by Alcone.
In May 2018, market researcher Ecovia Intelligence revealed results indicating how China is the second biggest market for the French-based natural cosmetics producer.
Following its financial results in the first quarter of the year, L’Occitane revealed that its brand is particularly strong in Asia, as it is “continuing to introduce more and more consumers” to its world of “all-natural products with proven ingredients and recipes”.