Hang Seng Launches New Index to Track 30 Largest Hong Kong Listed Tech Companies
26th July 2020 | Hong Kong
Hang Seng Indexes has launched a new index to track 30 of the largest technology companies listed on the Hong Kong Stock Exchange.
” Hang Seng Index Launches Hang Seng TECH Index “
The new index – Hang Seng TECH Index, will track the largest 30 technology stocks in Hong Kong including Alibaba, Tencent, Meituan, Xiaomi, JD, Lenovo, PA Good Doctor, ZTE and BYD. The index launch date is 27th July 2020.
Hang Seng TECH Index – 30 HK Tech Stocks
The Hang Seng TECH Index will cover Hong Kong-listed companies that have high business exposure to selected technology themes, including internet, fintech, cloud, e-commerce and digital activities. The companies are further screened by whether they operate via a technology-enabled platform, their research and development expenses to revenue ratio, and their revenue growth. The top 30 stocks in terms of market capitalisation will then be selected as index constituents.
The index constituency is reviewed quarterly and with an additional “Fast Entry Rule” such that newly IPO companies with a top 10 ranking by market capitalization at the 1st closing trading of trading, will be added to the index immediately on the 10th trading day (at trading close). The new index is calculated and disseminated in real-time at 2-seconds interval.
The Hang Seng TECH Index will be positioned alongside the flagship Hang Seng Index (HSI) and Hang Seng China Enterprise Index (HSCEI). A backtesting shows a return of 36.2% for the year of 2019, and 35.3% for the 1st half of 2020. As of 30th June 2020, there are 163 information technology or technology companies listed on Hong Kong Exchange (HKEX).
Hang Seng TECH Index
- Track 30 largest technology companies listed on the Hong Kong Stock Exchange
- Technology themes: Internet, fintech, cloud, e-commerce and digital activities
- Screening Criteria: Technology-enabled, R&D expenses to Revenue, Revenue Growth
- Top 30 stocks by market cap. after screening will become the index constituents
- Index Reviewed quarterly with “Fast Entry”
- Index is calculated real-time at 2 seconds interval
Hang Seng TECH Index – 30 HK Tech Stocks
|S/N||Stock Code||Name||Weighting (%)|
|23||1347||HUA HONG SEMI||1.32|
|25||6088||FIT HON TENG||0.75|
Hang Seng Indexes Company
Hang Seng Indexes Company is 100% owned by Hang Seng Bank. It is one of the largest bank in Hong Kong and is part of the HSBC Group.
Deputy CEO Hang Seng Indexes Company, Anita Mo:
“In view of the rapid blossoming of new businesses in the technology sector and the increasing number of technology companies that are listed in Hong Kong, we developed the Hang Seng TECH Index to meet the fast-growing interest in this investment theme among investors.
The Index aims to reflect the performance of sizeable companies in this sector, and to facilitate the development of various index-linked products, including funds and derivatives. We believe that this new index could join the Hang Seng Index and the Hang Seng China Enterprises Index to become one of our flagship indexes.”
About Hang Seng Indexes Company
Hang Seng Indexes Company Limited (‘Hang Seng Indexes Company’) manages and compiles the Hang Seng Family of Indexes, which cover stocks and bonds listed in Hong Kong and Mainland China. Our index series includes the Hang Seng Index and the Hang Seng China Enterprises Index, as well as Stock Connect, Greater Bay Area and sector- related indexes. As at the end of 2019, assets under management in products passively tracking indexes in the Hang Seng Family of Indexes had reached a total of about US$34 billion.
Hang Seng Indexes Company is a wholly owned subsidiary of Hang Seng Bank.
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About Hang Seng
Founded in 1933, Hang Seng is one of Hong Kong’s largest listed companies. Hang Seng major business activities comprise wealth and personal banking, commercial banking, and global banking and markets. The Bank also offers a comprehensive range of renminbi services.
Our market capitalisation as at 31 December 2019 was HK$307.8 billion. We serve over half the adult residents of Hong Kong – more than 3.5 million people – through about 290 service outlets. We also maintain branches in Macau and Singapore and a representative office in Taipei.
Established in May 2007, wholly owned subsidiary Hang Seng Bank (China) Limited is headquartered in Pudong, Shanghai, and operates a mainland China network with outlets in the Pearl River Delta, the Yangtze River Delta, the Bohai Rim Region and midwest China. Hang Seng is a principal member of the HSBC Group, one of the world’s largest banking and financial services organisations.
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