Hang Seng Index Company: Hang Seng Tech Index rose by over 53% in the past year. DeepSeek model has become a key catalyst.

The Hang Seng Index Company stated that after recording a nearly 19% increase in 2024, the Hang Seng TECH Index has seen over 53% in the past year and is expected to continue its upward trend in 2025. As of July 18, 2025, the index focusing on tech stocks has risen another 24% this year. The momentum of the TECH Index continues, mainly due to DeepSeek launching its cost-effective large language model (LLM) in January, which has boosted market optimism for Chinese artificial intelligence and driven the performance of tech stocks. In addition, the TECH Index has recovered from the downturn caused by trade tensions in April 2025. As of July 18, 2025, the upward trend since the beginning of the year has expanded the TECH Index's increase in the past year to over 53%, outperforming the broader market represented by the Hang Seng Composite Index by 12 percentage points. While the TECH Index has performed better than the broader market, its volatility is also higher. As of July 18, 2025, the TECH Index's one-year annualized volatility is nearly 41%, while the Hang Seng Composite Index is at 28%. Since the first ETF tracking the TECH Index was launched in August 2020, the number of ETPs (ETF + L&I) based on the TECH Index has continued to rise, driving overall assets under management (AUM) to also increase. As of the end of June 2025, the total AUM of ETPs tracking the TECH Index was $26.3 billion, an increase of nearly 35% from the end of 2024. Over the past few years, AUM has continued to rise, with a cumulative increase of 362% from 2021 to 2025. As of June 30, 2025, a total of 29 ETPs tracking the TECH Index are listed on 13 different exchanges in the US, Europe, and Asia. In terms of ETP AUM and number, the TECH Index is the most widely tracked index in the Hang Seng Index Series. On the other hand, the Stock Connect program launched in November 2014 has been crucial in promoting the development of the Hong Kong capital market. As of June 30, 2025, there are a total of 17 ETFs eligible for southbound trading, with 13 tracking the Hang Seng Index Series. It is worth noting that 5 of them are based on the TECH Index, making it the index with the most southbound eligible ETFs currently tracking. According to the Hang Seng Index Company, since the launch of TECH Index futures in November 2020, trading volume has steadily increased over the past five years. HKEX data shows that in the first half of 2025, the average daily trading volume (ADV) of TECH Index futures reached about 172,000 contracts, a 44% increase from 2024. Long-term wise, since the trading of TECH Index futures began in 2020, ADV has increased by 97 times, significantly driving up trading volume and increasing TECH Index futures' market share in the Hong Kong futures market to 22%, second only to Hang Seng Index futures and H-shares Index futures.