HONG Kong Exchanges and Clearing has unveiled the Hong Kong Stock Exchange Tech 100 Index, featuring Chinese tech giants such as Tencent Holdings, Alibaba Group Holding, and Contemporary Amperex Technology (CATL) among its constituents.

Launched Tuesday, the Tech 100 Index comprises the top 100 technology firms listed on the exchange across six innovative sectors: artificial intelligence (AI), biotechnology and pharmaceuticals, electric vehicles and intelligent driving, information technology, internet services, and robotics. Each constituent stock is subject to a maximum weighted market capitalization ratio of 12%.

Constituent stocks — reviewed every June and December — must have maintained an average daily trading volume of at least HK$20 million (US$2.6 million) over the preceding six months, alongside a research and development investment ratio above 3% and annual revenue growth exceeding 5% over the past two years.

Bonnie Chan, chief executive officer of Hong Kong Exchanges and Clearing, stated, “This broad-based index spans multiple innovative industries that are reshaping the Hong Kong stock market landscape, underscoring its pivotal role in advancing these emerging sectors.” She added that the index offers investors an effective and comprehensive tool to capture opportunities in technology and emerging industries.

All constituents of the index are included in either the Shanghai or Shenzhen-Hong Kong Stock Connect schemes, making them accessible to both domestic and international investors.

As of Sept. 30, the total market capitalization of eligible index stocks under the Stock Connect schemes exceeded HK$6.3 trillion, accounting for approximately 12.7% of the total market capitalization of Hong Kong stocks, according to HKEX data.

“An important function of the index is to pave the way for corresponding exchange-traded funds in the future, offering investors additional new investment opportunities,” said Shen Meng, executive director of Chanson & Co.

HKEX also announced that it has signed an agreement with E Fund Management, a leading Chinese mainland asset management company, authorizing the firm to launch ETFs tracking the HKEX Tech 100 Index in the mainland.

Chan noted that this agreement will further stimulate the development of Hong Kong stock-related products in the mainland and meet strong investor demand to access Hong Kong-listed tech firms.

Analysts pointed out that the number of tech companies listed in Hong Kong has grown in recent years, spanning increasingly diverse categories. They added that the introduction of indices such as the HKEX Tech 100 Index will provide investors with more options and help channel mainland capital into Hong Kong’s tech stocks.

(SD-Agencies)