Hang Seng Indexes Company on Monday launched a market consultation on potential changes to the Hang Seng Tech Index methodology, in an attempt to strengthen the market representation and ensure HSTECH remains a broad and future‑ready benchmark for technology stocks.
Proposed changes include expanding theme coverage, removing sector requirements, refining the six main tech themes to digital platforms and solutions, artificial intelligence, advanced hardware, robotics and automation, cloud, and frontier technology. Relevant sub-themes are also to be expanded from 16 to 24 that align with the refined themes.
In addition, changes include introducing a two-stream selection mechanism – market value stream and sales growth stream, and increasing the number of constituents from 30 to 50.
Under new changes, the eligible universe will be confined to the Hang Seng Composite LargeCap & MidCap Index.
The consultation comes in response to a broader universe of Hong Kong-listed technology companies, and the tendency for higher-growth companies to be smaller by market capitalisation.
The potential changes are expected to be announced by the end of September, and implemented in the index review for the period ended 30 September.
