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BackHong Kong tech index to harness fast-growth companies in bid for better performance
Hong Kong tech index to harness fast-growth companies in bid for better performance
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SCMP Economy50 minutes agoBusiness1 min readChina

Hong Kong tech index to harness fast-growth companies in bid for better performance

New measures aim to improve index performance amid underperformance compared to global peers

hang seng tech indexstock markethong kong

Quick Look

  • Hang Seng Indexes Company is reforming the Hang Seng Tech Index to boost its relevance, as the index has fallen 23 per cent this year.
  • The changes will focus on selecting emerging companies based on sales growth to better reflect forward-looking market trends.

AI-generated summary

Why It Matters

The Hang Seng Tech Index has declined 23 per cent this year while global peers have reached record highs. The index is often compared to the Nasdaq.

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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.

Open Questions

  • What specific criteria will define the new sales growth threshold?
  • When will the index changes be implemented?

Related Topics

hang seng tech index
PeopleAnita Mo
OrganizationsHang Seng Indexes CompanyTencent HoldingsMeituan
PlacesHong Kong
Topicsstock markethong kongtech stockstencetmeituan
This article was originally published by SCMP Economy.

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