Hang Seng Tech Index to add 10 fast-growth firms, sets HK$500m sales bar
The move by Hang Seng Indexes Company aims to revitalise the benchmark after it lagged global peers, falling 23 per cent this year.
Hong Kong Tech Index Reform
Hang Seng Indexes Company plans to revitalise the Hang Seng Tech Index by adding 10 rapidly growing firms. These companies must meet a minimum annual sales threshold of HK$500 million (US$64 million). This measure aims to enhance the technology-focused benchmark's performance, which has not fully captured recent artificial intelligence (AI)-driven market gains.
The index, often seen as Hong Kong's equivalent to the Nasdaq, has experienced a decline in its relative standing among global peers.
Index Underperformance This Year
The Hang Seng Tech Index has fallen by 23 per cent so far this year. Its largest components, including Chinese technology giants Tencent Holdings and Meituan, have struggled to generate investor enthusiasm. This contrasts sharply with the strong interest in AI developers and related sectors, such as memory chip manufacturers, globally.
In comparison, both the Nasdaq 100 and the chip-heavy Korea Composite Stock Price Index (KOSPI) have achieved multiple record highs in 2026.
Expanding Index to Capture Growth
The new sales threshold is part of a broader set of reforms by Hang Seng Indexes Company, which has managed Hong Kong's primary market indices since 1969. The company's CEO, Anita Mo, stated the intention to make the tech index "forward-looking" by incorporating emerging companies based on their sales growth.
The overall plan aims to expand the index to a total of 50 firms, seeking to diversify its exposure beyond its current heavily weighted constituents.
This reform signals a strategic shift for Hong Kong's technology market, moving towards greater inclusion of growth-oriented firms. Investors in the Hang Seng Tech Index may see a rebalancing of exposure away from established internet giants towards potentially higher-growth, emerging technology companies.
The success of this initiative will depend on the new constituents' ability to attract capital and reflect broader global tech trends, particularly in areas like AI. Market participants should monitor the specific companies added and their impact on index volatility.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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