Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce an expansion of its index portfolio with the launch of the HKEX Tech 100 Index (HKEX Tech 100), the Group’s first Hong Kong equity index that underscores its ongoing investment in building further on the region’s capital market ecosystem.
HKEX Tech 100 is a broad-based benchmark that tracks the performance of 100 of the “largest Hong Kong-listed companies across six innovative themes: Artificial Intelligence, Biotech & Pharmaceutical, Electric Vehicles & Smart Driving, Information Technology, Internet, and Robotics.”
All constituents are eligible for Stock Connect Southbound trading, “ensuring broad accessibility for global and Chinese Mainland investors.”
HKEX is also pleased to announce it has entered into a licensing agreement with E Fund Management Company Limited, a Chinese Mainland asset management company, for the introduction of “an exchange traded fund (ETF) based on HKEX Tech 100 in the Chinese Mainland.”
HKEX Chief Executive Officer, Bonnie Y Chan, said that they are eager to announce the launch of the HKEX Tech 100 Index, a key milestone in HKEX’s journey “to build its index and data business.”
This broad-based index covers the various sectors in their listed issuer ecosystem that have transformed the DNA of Hong Kong’s markets, and its launch “underscores the critical role our markets play in nurturing these emerging industries.”
This new benchmark provides investors with “an effective and comprehensive tool to capture opportunities in some of the most exciting and transformative sectors in our market.”
The index incorporates a fast-entry mechanism, “enabling newly-listed companies that meet specific criteria to join the index outside of the regular review cycle after they become eligible for Stock Connect Southbound trading.”
Ms Chan added that their licensing arrangement with E Fund Management will help support the further development of “a product suite linked to Hong Kong equities in the Chinese Mainland, meeting the strong market demand in the region for opportunities in Hong Kong’s vibrant tech sector.”
They look forward to working with E Fund Management and other industry partners, as they “develop indices and products that meet investor needs and support the creation of new investment tools.”
Dr Liu Xiaoyan, Chairwoman of E Fund Management, stated that they are pleased to work with HKEX to develop “an ETF for the Chinese Mainland market that tracks the HKEX Tech 100 Index.”
This latest index now reportedly brings together a “group of 100 technology companies listed in Hong Kong.”
They look forward to the launch of this ETF, which will “aim to provide investors with an efficient way to tap into the opportunities of Hong Kong-listed tech companies while supporting the real economy and fostering the ongoing development of emerging industries.”
With the licensing agreement, E Fund Management intends to launch an ETF in the Chinese Mainland based on HKEX Tech 100, “subject to regulatory approval and the issuer’s further announcements.”
HKEX will now aim to further explore other index opportunities and “work with industry partners in product development around its indices.”