Hong Kong tech index to harness fast-growth companies in bid for better performance
Compiler unveils revenue threshold in plan to expand index to 50 firms after falling behind global peers amid lack of AI exposure
The threshold is among a set of new measures Hang Seng Indexes Company will use to reform the Hang Seng Tech Index, which is referred to as Hong Kong’s answer to the Nasdaq but has lost its shine relative to global peers, falling 23 per cent so far this year.
The gauge’s most heavily weighted constituents – Chinese tech giants including Tencent Holdings and Meituan – have failed to spark investor excitement amid the frenzy for AI developers and related stocks, such as memory chipmakers. By comparison, the Nasdaq 100 and the chip-heavy Korea Composite Stock Price Index have hit records multiple times this year.
“We want [the tech index] to be forward-looking by picking some emerging companies by sales growth,” said Anita Mo, CEO at the firm, which has compiled the city’s major market indices including the flagship Hang Seng Index since 1969.
