A NEW index focused on technology giants based on the mainland is set to give investors greater access to their growing dominance in Hong Kong’s market.

The Hang Seng Tech Index, which launched yesterday with backdated prices, tracks the 30 largest tech companies listed in the city, including Tencent Holdings Ltd., Alibaba Group Holding Ltd., Meituan Dianping and Xiaomi Corp. Tracking the gauge this year would have returned 47 percent for investors, versus a loss of 12 percent for the Hang Seng Index.

“All the conditions are now ready for large mainland tech stocks whether on the mainland or already listed elsewhere,” Vincent Kwan, chief executive officer of index compiler Hang Seng Indexes Co., said yesterday.

The move comes at a time when further listings of mainland technology firms are in the pipeline, such as Jack Ma’s Ant Group, following those of NetEase Inc. and JD.com Inc.

Listing closer to home has become more attractive as tensions between the United States and China threaten to curtail Chinese companies’ access to U.S. capital markets.

The compiler of the Hang Seng Index has already embraced change through moves such as scrapping a weighting limit for dual class shares on some of its gauges. The tech index is seen helping investors bridge a gap between a Hong Kong benchmark overstuffed with old economy banks and insurers, and the technology companies that have emerged as big winners in the city’s beaten-down market.

“There are too many laggards in the Hang Seng Index,” said Castor Pang, head of research at Core Pacific-Yamaichi International Hong Kong.

“With overseas-listed mainland firms deciding to list closer to home, the Hong Kong market falls short in terms of having a representative index for these stocks. This new index serves to fill this gap and drive capital flows.”  (SD-Agencies)