The Hong Kong Special Administrative Region’s main technology stock benchmark is set for a revamp to include more companies representing the fast-growing artificial intelligence and robotics sectors, a long‑awaited move for investors eager to better capture the Chinese mainland’s technological advances, according to Bloomberg.
Hang Seng Indexes Co plans to increase the number of constituents in the tech gauge to 50 from 30, the index compiler said in a consultation paper released late Monday. Ten members will be chosen by revenue growth rather than market value, giving smaller and high-growth firms a foothold in the gauge, it said.
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The overhaul is expected to broaden representation and enable the Hang Seng Tech Index, which has about $40 billion in passive assets tracking it, to capture the early gains of high-growth tech firms.
The revamp “would give a chance to emerging leaders, particularly across AI, semiconductors and other new-economy areas, to enter the benchmark earlier rather than wait to become very large,” said Charu Chanana, chief investment strategist at Saxo Markets.
The index’s thematic framework would also be overhauled. Six main themes — digital platforms, AI, advanced hardware, robotics, cloud computing and frontier technology — would replace the current structure. The sub‑themes would also expand from 16 to 24. New areas such as quantum computing and aerospace will be included, the index compiler said.
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Currently, the Hang Seng Tech Index consists of 30 members, which is weighted by free-float market value with an 8 percent cap on individual stocks. A simulation showed that the top 10 constituents’ combined weight would fall to 66.1 percent from 70.6 percent once the revamp is completed, according to the paper.
The index compiler is seeking stakeholder feedback by Sept 18, with a target to announce final revisions by the end of next month. The changes will be implemented in the December 2026 rebalancing, it said.
