Hong Kong launches share index of technology giants
A new share index focused on China’s technology giants has been launched by Hong Kong’s stock market.
The Hang Seng TECH Index went live on Monday and includes internet giants such as Tencent, Alibaba and JD.com.
It will feature 30 of the largest tech firms listed in Hong Kong, which are among the world’s biggest companies.
The new index comes as Chinese tech firms face greater scrutiny in the US, with many looking at listings in both Hong Kong and China.
Jack Ma, the billionaire founder of Alibaba, recently announced plans to list its affiliate financial arm Ant Group in Hong Kong.
Alibaba, NetEase and JD.com are three tech giants that have recently listed in Hong Kong amid growing tensions between the US and China. They are included in the new Hang Seng TECH Index.
The Ant Group is described as the world’s most valuable unicorn – a start-up that has grown to a value of more than $1bn (£778m).
Once publicly listed, it should also move into the index.
Ant Group, a financial technology (fintech) firm, also wants to list on China’s tech-centric Star stock market as it shuns a US stock market listing.
Analysts say the Hang Seng TECH index will attract investors to other Hong Kong tech stocks and look beyond the more well-known Hang Seng index which is dominated by banks and insurers.
“The new index aims to rival and beat the Nasdaq in the US market for Chinese tech giants,” said Bruce Pang, head of macro and strategy research for China Renaissance Securities.
The Hang Seng TECH Index will track Hong Kong-listed companies that have high business exposure to selected technology themes, including the internet, fintech, cloud, e-commerce and digital activities.