HKEX launches two technology-themed indices

HKEX announced today (April 13) that it will add two new technology indices to its index series, including the HKEX Korea Exchange Semiconductor Index and the HKEX Technology and US Tech 100 Index. As the first jointly-named index between HKEX and the Korea Exchange, the HKEX Korea Exchange Semiconductor Index tracks Hong Kong-listed semiconductor companies eligible for Stock Connect, as well as the performance of the Korea Exchange Semiconductor Top 15 Index (KRX Semiconductor Top 15 Index) representing leading semiconductor companies in Korea, providing cross-market investment opportunities. The HKEX Technology and US Tech 100 Index tracks all constituents of the HKEX Technology 100 Index and the performance of the 100 largest technology companies listed on Nasdaq (including the seven major US tech giants). Both indices are designed with approximately 60% weight for Hong Kong-listed companies eligible for Stock Connect and approximately 40% weight for overseas listed companies, aiming to promote the development of more exchange-traded funds (ETFs) to be included in the Southbound ETF Connect, providing Chinese mainland investors with more diversified cross-market opportunities. HKEX also announced that it has signed licensing agreements with BOCI-Prudential, China International Capital Corporation, E Fund Management (Hong Kong), GF International Asset Management, and Huatai Yinhua Asset Management. Upon regulatory approval, ETF products tracking the newly launched indices will be introduced in the Hong Kong market. HKEX CEO Charles Li said, "We are pleased to introduce two new indices, further enriching HKEX's index products, and committing to building an exchange-led index ecosystem, reflecting our long-term commitment to promoting product innovation and market development. This expansion covers self-operated and jointly-named new benchmark indices, focusing on the opportunities brought by technological development, aiming to promote diversification of index-linked products, enhance market participation, and improve liquidity and vitality in the primary and secondary markets." Li continued, "We are also pleased to have signed licensing agreements with BOCI, CICC, E Fund Hong Kong, GF International and Huatai Yinhua to launch ETFs tracking these two new indices, reflecting our deep collaboration with the industry and our commitment to developing indices that meet market needs and satisfy the demands of regional and international investors." With an increasing number of technology companies from different sectors choosing to list in the vibrant market of Hong Kong, investors' demand for related products is becoming increasingly diversified. These new benchmark indices aim to reflect the development trends of the relevant markets, provide investors with diversified and focused investment choices in global and regional technology themes, and support the development of products that cater to different investment strategies and risk preferences.