New technology index launched in Hong Kong Hong Kong stock market launches new index targeting Chinese tech giants. The Hang Seng Tech Index kicks off today and includes stocks from companies such as Tencent, Alibaba and JD.com. The index will […]
New technology index launched in Hong Kong
Hong Kong stock market launches new index targeting Chinese tech giants.
The Hang Seng Tech Index kicks off today and includes stocks from companies such as Tencent, Alibaba and JD.com.
The index will be attended by 30 of the largest technology participants in the Chinese market, registered in Hong Kong.
Its appearance is due to the fact that Chinese companies have increasingly begun to face increased scrutiny in the United States..
Alibaba, NetEase and JD.com are included in the new index. The Ant Group, a subsidiary of Alibaba planning a Hong Kong listing, will also be listed on the Hang Seng.
Analysts say tech index will draw investor attention to other Hong Kong stocks.
«New index aims to rival and outperform Nasdaq», – said Bruce Pung, Head of Macroeconomic and Strategic Research, China Renaissance Securities.
The technical index will track Hong Kong-listed companies that have a high level of business activity on selected parameters, including Internet, fintech, cloud services, e-commerce and digital activity..
«Chinese government wants its tech companies to have access to foreign capital. The Hong Kong Index will help you meet this challenge», – stated in Beijing.
The market has seen a huge investor appetite for Alibaba and Tencent stocks, which have performed well during the coronavirus pandemic as more people choose the internet to shop and find entertainment..
The new index could trigger the launch of specialized investment funds that track 30 tech stocks known as exchange-traded funds (ETFs).
«This is another step that heralds the continued growth of China’s technology space and a positive development for both local and international investors.», – added Andy Maynard, Managing Director of China Renaissance investment bank.