What's Happening?
Hong Kong Exchanges and Clearing Ltd. (HKEX) has launched the HKEX Tech 100 Index, a new benchmark designed to track the performance of the 100 largest technology companies listed in Hong Kong by market
value. This marks HKEX's first independently developed equity benchmark, aimed at expanding its index business. The index, which started with a base value of 10,000 points in December 2020, currently stands at 8,129 points. Additionally, E Fund Management Co. Ltd. has been authorized to launch a mainland-listed exchange-traded fund (ETF) that will track this new index. The introduction of the Tech 100 Index comes amid a significant increase in Hong Kong's ETF market, which saw a record average daily turnover of HK$37.8 billion in the first three quarters of 2025, representing a 145% increase from the previous year.
Why It's Important?
The launch of the HKEX Tech 100 Index is a strategic move to bolster Hong Kong's position as a leading financial hub for technology investments. By providing a dedicated index for tech companies, HKEX aims to attract more investors and enhance market transparency. The significant growth in the ETF market indicates a rising interest in tech investments, which could lead to increased capital inflow into Hong Kong's financial markets. This development is crucial for investors seeking exposure to the tech sector, as it offers a comprehensive benchmark for evaluating the performance of major tech firms. Furthermore, the collaboration with E Fund Management to create an ETF tracking the index could facilitate cross-border investment opportunities, strengthening financial ties between Hong Kong and mainland China.
What's Next?
The introduction of the Tech 100 Index is likely to spur further innovations in financial products linked to the tech sector. Investors and financial institutions may develop new strategies and products to capitalize on the index's performance. Additionally, the success of this index could encourage HKEX to explore the creation of more sector-specific indices, potentially leading to a more diversified and robust financial market. As the tech industry continues to evolve, the index will need to adapt to include emerging tech companies, ensuring it remains a relevant and accurate reflection of the sector's performance.
