The current structure of 30 constituent stocks in the Hang Seng tech Index is appropriate and that the Hang Seng Indexes Company is inclined to keep it unchanged, said Daniel Wong, head of product management of the firm.
After five years of development, the investment ecosystem surrounding the tech Index has become mature, he said in an interview with local broadcaster Radio Television Hong Kong.
There are now 32 exchange-traded funds (ETFs) tracking the index, and together with other derivatives, total assets under management have reached US$44 billion, exceeding even those linked to the longer-established Hang Seng Index, showing solid market recognition, Wong said.
Wong noted that the use of artificial intelligence helps speed up analysis of massive datasets, saving about two-thirds of the time for the same type of work and accelerating updates.
However, the Hang Seng Indexes Company still prefers to maintain its quarterly review system, as overly frequent changes would not be conducive to market development, he said.
He added that adopting the latest technologies helps improve market transparency and liquidity, further strengthening Hong Kong’s position as an international financial centre and innovation hub.
