The Hang Seng Index will expand its roster with the inclusion of two new companies, increasing its total number of constituents from 93 to 95, according to a recent announcement from the Hang Seng Indexes Company. The additions, set to take effect on September 7, comprise Hua Hong Grace Semiconductor, a leading Chinese contract chipmaker, and Weichai Power, a manufacturer of trucks and engines.

The incorporation of Hua Hong Grace Semiconductor will raise the information technology sector's representation within the index from 15.86 percent to 17.11 percent. Meanwhile, Weichai Power's inclusion will slightly increase the weight of the energy, materials, industrials, and conglomerates category, from 10.87 percent to 11.12 percent.

This move aligns with Hong Kong’s strategic efforts to enhance its exposure to the artificial intelligence (AI) sector by boosting the presence of technology companies in its flagship stock index and attracting more Chinese tech firms to list locally. While the global AI market has recently faced headwinds due to rising U.S. Treasury yields and persistent inflation concerns, the Hang Seng Index has lagged behind its international counterparts, partly because of its limited exposure to AI hardware firms.

Currently, the information technology sector ranks third in the index by weighting, trailing financials at 33.97 percent and consumer discretionary at 23.88 percent. In tandem, the Hang Seng Tech Index will undergo adjustments, with Shanghai Ulivatar CoreX Semiconductor, a graphics processing unit manufacturer, joining as Tongcheng Travel exits. The subindex will retain its total of 30 constituents following these changes.

Earlier this month, the Hang Seng Indexes Company unveiled a proposed overhaul for the Hang Seng Tech Index’s selection criteria. The revision plans to increase the number of constituents from 30 to 50, with 10 companies selected based on revenue growth rather than market capitalization, marking a shift in how tech firms are evaluated.

Separately, the broader Hang Seng Composite Index will see the greatest number of changes, growing from 534 to 580 members. New entrants include Manycore Tech, a design software developer that completed a HK$1.09 billion initial public offering in April; Victory Giant Technology, a printed circuit board supplier to Nvidia that also listed in April; and chipmaker Shanghai Fudan Microelectronics Group. Concurrently, several companies will be removed from the composite index, such as instant noodle producer Nissin Foods and theme park operator Haichang Ocean Park Holdings.

During the index’s previous review in May, notable additions to the Hang Seng Index included Shanghai-based courier J&T Global Express, Aluminum Corporation of China, and Beijing-founded pharmaceutical firm BeOne Medicines. At that time, Chinese AI companies MiniMax and Zhipu (also known as Zai) joined the Hang Seng Tech Index.

Established in November 1969, the Hang Seng Index currently boasts a market capitalization of HK$31.3 trillion, representing approximately 67 percent of Hong Kong’s stock market value and accounting for more than half of its total trading volume.