Hang Seng Tech Index to Expand Constituents to 50 Stocks

The Hang Seng Index Company announced the results of its consultation on the Hang Seng Tech Index, outlining six reforms set to take effect in December. First, the requirement for eligible candidates to belong to five designated sectors under the Hang Seng Industry Classification System will be removed. Second, existing themes will be consolidated and expanded with a new frontier technology theme; the revised six technology themes are digital platforms and solutions, artificial intelligence, advanced hardware, robotics and automation, cloud computing, and frontier technology. Third, the number of technology sub-themes will increase from 16 to 24 to align with the updated themes. Fourth, a tiered stock selection mechanism will be introduced, expanding the scope from main board listed companies to constituents of the Hang Seng Composite Large- and Mid-Cap Index. Fifth, a dual-category selection mechanism will be adopted, using market capitalization ranking and revenue growth ranking as criteria; non-existing constituents must also meet a minimum average daily trading volume of HK$100 million over the past three months, while those selected by revenue growth must have recorded annual revenues of at least HK$500 million in each of the last two consecutive fiscal years. Sixth, the number of constituents will increase from 30 to 50, with the top 40 selected by market capitalization ranking and the remaining 10 by revenue growth ranking over the past 12 months.