Country Garden Holdings Co. will be removed from Hong Kong’s benchmark Hang Seng Index, while Sinopharm Group Co. will be added, according to a statement Friday.

Hang Seng Indexes Co. unveiled the changes — which take effect September 4 — after its latest quarterly review and part of its ongoing effort to boost representation of new-economy stocks. The number of HSI members remains unchanged at 80.

The index provider also announced that Country Garden Services Holdings will be removed from the Hang Seng China Enterprises Index, while Trip.com Group will be added. The number of constituents remains unchanged at 50.

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Market watchers expected this revamp would expand the index’s health coverage as the sector remains underrepresented.

The Hang Seng Index has plunged almost 11% this month as market confidence remains fragile over China’s weaker-than-expected economic recovery. The gauge is heading for its fourth consecutive annual loss.

--With assistance from Manuel Baigorri.