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Hang Seng Indexes Launches Eight New Indices in One Day, Covering More Tech Sub-Sectors
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On September 23, Hang Seng Indexes Company launched eight new indices, including the Hang Seng Tech Composite Index series (composite, large-cap, and small-mid-cap) and five thematic indices: Hang Seng Semiconductor Industry Index, Hang Seng Hard Technology Index, Hang Seng Computing Power Theme Index, Hang Seng Stock Connect Computing Power Theme Index, and Hang Seng A-Share Semiconductor Materials Theme Index. The Hang Seng Tech Composite Index, which aims to measure overall tech company performance in Hong Kong, differs from the 2020 Hang Seng Tech Index by excluding JD.com and Baidu while including China Mobile and BeiGene, and features more granular industry classification. This launch follows an August 10 consultation on expanding the Hang Seng Tech Index from 30 to 50 constituents and broadening tech sub-themes from 16 to 24, with results expected by end-September. The broader composite index series is expected to include more Hong Kong-listed tech companies from niche sectors.
Source report
By Wang Dayu, Southern Finance Correspondent
On September 23, Hang Seng Indexes Company launched eight new indices at once.
The eight indices include three indices under the Hang Seng Tech Composite Index Series:
- Hang Seng Tech Composite Index
- Hang Seng Tech Composite LargeCap Index (classified by market capitalization)
- Hang Seng Tech Composite Small & MidCap Index (classified by market capitalization)
The remaining five are thematic indices:
- Hang Seng Semiconductor Industry Index
- Hang Seng Hard Technology Index
- Hang Seng Computing Power Theme Index
- Hang Seng Stock Connect Computing Power Theme Index
- Hang Seng A-Share Semiconductor Materials Theme Index
Key Focus: Hang Seng Tech Composite Index
Among these, the Hang Seng Tech Composite Index deserves particular attention. According to the official announcement, the index is designed to "provide a benchmark for measuring the overall performance of technology companies in the Hong Kong securities market."
Although its name is similar to the Hang Seng Tech Index (launched in July 2020), the two indices differ in direction.
Top 10 Constituent Differences
According to the Hang Seng Indexes Company website, compared to the Hang Seng Tech Index, the Hang Seng Tech Composite Index has:
- Removed: JD.com-SW (9618.HK) and Baidu Group-W (9888.HK)
- Added: China Mobile (0941.HK) and BeiGene (6160.HK)
More Granular Industry Classification
The Hang Seng Tech Composite Index adopts a more detailed industry classification approach:
- Hang Seng Tech Index covers five major sectors: Industrials, Non-essential Consumer Goods, Healthcare, Financials, and Information Technology.
- Hang Seng Tech Composite Index further subdivides sectors, e.g., Healthcare is broken down into Pharmaceuticals, Biotechnology, Pharmaceutical and Biotech Contract Services, Medical Equipment and Supplies, and Medical and Aesthetic Services. This allows for more targeted stock selection.
(Source: Hang Seng Tech Composite Index Compilation Rules)
Background and Outlook
The launch of these new indices was preceded by earlier preparations. On August 10, Hang Seng Indexes Company issued a consultation paper on proposed revisions to the Hang Seng Tech Index compilation methodology, including:
- Increasing the number of constituent stocks from 30 to 50
- Removing industry classification requirements
- Expanding the number of technology sub-themes from 16 to 24
The consultation period ended on September 18, with results expected to be announced by the end of September.
As the flagship index prepares for expansion, the broader composite index series has now been introduced, signaling that more Hong Kong-listed tech companies across niche sectors are expected to be included in the future.
Source
21世纪经济报道Neutral / independent
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Hang Seng Indexes launches eight new tech and semiconductor indices in Hong Kong