Hong Kong Exchanges and Clearing (HKEX) has taken a significant step in showcasing the city’s technological prowess by launching its first Hong Kong equity index, the HKEX Tech 100 Index. This innovative benchmark is designed to track the performance of the 100 largest technology companies listed in Hong Kong, offering investors a comprehensive view of the city’s most promising tech sectors.

The index spans six cutting-edge innovative sectors that represent the forefront of technological advancement: artificial intelligence, biotech and pharmaceutical, electric vehicles and smart driving, information technology, internet, and robotics. This broad-based approach ensures that investors can gain exposure to a diverse range of technological innovations emerging from Hong Kong’s dynamic business ecosystem.

One of the most compelling features of the HKEX Tech 100 Index is its accessibility. Through the Stock Connect Southbound trading program, both global and Chinese investors can easily engage with these top-tier tech companies. The index includes a unique fast-entry mechanism that allows newly listed companies meeting specific criteria to join the index outside the regular review cycle, ensuring the benchmark remains current and reflective of the rapidly evolving tech landscape.

Recognizing the potential of this new index, HKEX has already forged a strategic licensing agreement with E Fund Management Company. This partnership aims to create an exchange-traded fund (ETF) based on the HKEX Tech 100 Index, pending regulatory approval. The proposed ETF represents an efficient investment tool for those looking to capitalize on the growth opportunities within Hong Kong’s tech sector.

Bonnie Chan Yi-ting, Chief Executive of HKEX, described the launch as a “significant milestone” in the exchange’s ongoing efforts to expand its index and data offerings. The initiative goes beyond simply creating an index – it’s about building a comprehensive ecosystem that connects investors with innovative technology companies.

Liu Xiaoyan, Chairwoman of E Fund Management, echoed this sentiment, highlighting the fund’s potential to provide investors with a streamlined approach to accessing the growth potential of Hong Kong-listed tech firms. This perspective underscores the index’s role as a gateway to innovation-driven investments.

The HKEX Tech 100 Index is more than just a financial instrument; it’s a testament to Hong Kong’s position as a hub for technological innovation. By focusing on key areas of technological advancement, the index reflects the global technology landscape and positions HKEX to attract increased interest from both domestic and international markets.

This strategic move comes at a crucial time when the technology sector continues to demonstrate remarkable growth and potential. The index and its associated ETF are expected to play a pivotal role in channeling investment into Hong Kong’s most promising companies, while also fostering greater integration between the city’s equity markets and mainland China’s investment community.

For investors, technology enthusiasts, and market watchers, the HKEX Tech 100 Index represents an exciting development. It offers a transparent, accessible, and comprehensive way to understand and invest in Hong Kong’s technological ecosystem, bridging the gap between innovative companies and potential investors.

As the technology landscape continues to evolve, this index stands as a forward-looking initiative that captures the dynamism and potential of Hong Kong’s tech sector, promising to be a valuable resource for those seeking to understand and engage with the city’s technological innovation.