Hong Kong index provider Hang Seng Indexes Company will soon launch a benchmark tracking the 30 largest technology companies listed in the city.
The Hang Seng TECH Index will cover firms with high business exposure to select technology themes, including internet, financial technology, cloud, e-commerce and digital activities, the company says in a statement on July 21.
The index will be launched on July 27.
According to Hang Seng Indexes, back-testing of data found that the new index would have achieved a return of 35.3% for the first half of 2020.
“In view of the rapid blossoming of new businesses in the technology sector and the increasing number of technology companies that are listed in Hong Kong, we developed the Hang Seng TECH Index to meet the fast-growing interest in this investment theme among investors,” Anita Mo, deputy chief executive officer of Hang Seng Indexes, says in the statement.
Component stocks, which are reviewed on a quarterly basis, are selected through a screening process that will, among other things, assess eligible candidates’ technology-enabled platforms, and the ratio of research and development spending to revenue.