Hong Kong's main technology index will be expanded by nearly double to include AI companies

Hong Kong’s leading technology index, the Hang Seng Tech, is being overhauled to include more companies from the fast-growing artificial intelligence and robotics sectors, according to Bloomberg. Investors have long awaited this expansion, as it will allow the benchmark to better reflect China’s technological progress, the agency notes. This year, the Hang Seng Tech has lost about 12%, lagging significantly behind comparable indices in China and the U.S.

It is expected that the number of companies included in the Hang Seng Tech Index—which is tracked by passive funds with approximately $40 billion in assets—will increase from the current 30 to 50. Ten of these companies will be selected based on revenue growth rather than market capitalization, which will give small but rapidly growing companies the opportunity to be included in the index.

Investors have long complained that the index is too slow to include certain leading Chinese technology companies. As an example, Bloomberg cited AI model developer Z.AI, which was added only in June—after its stock had risen by more than 1,000% since its initial public offering in January.

There are also plans to revise the index’s thematic structure, dividing it into six main categories: digital platforms, artificial intelligence, advanced hardware, robotics, cloud computing, and advanced technologies. Among other things, new segments such as quantum computing and aerospace technology will be added, according to the index compiler.

The reform is currently open for public comment. The final changes are expected to be announced by the end of September, and the new rules are to be implemented when the index is rebalanced in December.

This article was AI-translated and verified by a human editor