HK tech index to harness fast-growing companies to drive gains

By the Editorial Team · Thursday, October 8, 2026

Hong Kong’s Hang Seng Tech Index will expand from 30 to 50 companies by adding fast-growing firms with significant sales and robust liquidity to enhance diversity and growth potential. These changes, effective December 7, aim to improve the index’s competitiveness amid global AI investment trends and reduce concentration risk with a lower maximum stock weighting.

Hong Kong’s technology-focused stock index will see an expansion and restructuring aimed at boosting its appeal amid a global surge in artificial intelligence-related investments. The Hang Seng Indexes Company, which manages the city’s major market benchmarks, plans to add 10 fast-growing companies with annual sales of at least HK$500 million to the Hang Seng Tech Index as part of reforms to be implemented in December.

The Hang Seng Tech Index, often described as Hong Kong’s equivalent to the Nasdaq, has underperformed compared to international peers, declining 23% so far this year. This contrasts with the Nasdaq 100 and Korea Composite Stock Price Index, which have reached record highs multiple times amid strong demand for AI developers and semiconductor stocks. The index’s largest components, including Chinese technology giants Tencent Holdings and Meituan, have struggled to generate investor enthusiasm in the current market environment.

To address these challenges, the index will expand from 30 to 50 members. Half of the new additions will be selected based on rapid sales growth over two consecutive years, provided they meet the HK$500 million sales minimum, regardless of market capitalization. The remaining 10 spots will be filled by companies chosen primarily on market capitalization, subject to a minimum average daily turnover of HK$100 million over the previous three months. This dual-criteria approach aims to balance growth potential with market liquidity, a key consideration for fund tracking and investment viability.

Anita Mo, CEO of Hang Seng Indexes Company, emphasized the forward-looking nature of the changes, noting the goal of capturing emerging companies that could drive future performance. Daniel Wong, head of product management at the firm, highlighted that introducing a growth-focused stream could allow smaller firms to be included earlier and potentially enhance the index’s returns as those companies succeed. The liquidity threshold, he added, is designed to allay concerns about the trading volumes of smaller constituents.

Earlier this year, in its May quarterly review, Hang Seng Indexes added MiniMax and Z.ai (also traded as Knowledge Atlas Technology), replacing Kingdee International Software and Kingsoft, in a bid to tap investor interest in new Chinese AI models. However, the share prices of these newcomers peaked before and shortly after their inclusion, limiting the index’s gains from those stocks.

The company will maintain its quarterly review schedule for constituent adjustment. Additionally, the maximum weight permitted for any single stock in the index will be lowered from 10% to 8% to reduce concentration risk.

The revised list of index components will be announced on November 20, with the changes taking effect on December 7.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.