The inaugural ETF tracking the Hong Kong Exchanges and Clearing Ltd Tech 100 Index has officially begun trading on the Hong Kong Stock Exchange.
Managed by E Fund Management (Hong Kong) Limited, this product is the first of its kind to follow this specific benchmark, providing global investors with a standardized and transparent avenue for accessing high-quality "hard tech" stocks listed in Hong Kong.
The Hong Kong Exchanges and Clearing Ltd (HKEX) Tech 100 Index is the first Hong Kong stock market index launched by HKEX itself.
In contrast to traditional technology indices, its constituent selection process shows a distinct bias towards "hard tech" and frontier innovation.
Regarding sector allocation, artificial intelligence theme constituents account for approximately 42% of the index weight, while biotechnology and pharmaceutical theme constituents make up about 21%, with the combined total exceeding 60%.
The index meticulously selects 100 securities from large and mid-cap technology companies eligible for Stock Connect trading, offering a diversified portfolio that spans from industry leaders to high-growth emerging enterprises.
It employs a free-float market capitalization weighting methodology, with a cap of 12% for any single security, and features a semi-annual rebalancing mechanism.
To maintain the index's investability, any constituent that loses its Stock Connect eligibility during a regular review period will be removed from the index.
While constituents generally require a minimum six-month listing history, the index incorporates a fast-entry mechanism to ensure it remains responsive to market dynamics.
This allows eligible and representative new listings to be included outside of the regular schedule.
Specifically, if a newly listed stock, upon its first trading day of Stock Connect eligibility, achieves a closing market capitalization that ranks within the top 35 of the existing index constituents, it can trigger the fast-entry criteria.
This design enables the index to capture high-growth technology companies earlier and more accurately reflect structural shifts within Hong Kong's tech sector.
The Chief Executive of Hong Kong Exchanges and Clearing Ltd Group, Bonnie Chan, stated that this ETF product combines a representative Hong Kong tech benchmark with a widely adopted investment vehicle, aiding investors in diversifying their portfolios while capturing growth opportunities in Hong Kong's tech companies.
She added that HKEX will continue to innovate and develop products that meet market needs, supporting the diverse investment requirements of global investors.
E Fund Management (Hong Kong) is a wholly-owned subsidiary of E Fund Management.
The Chairman of E Fund Management, Liu Xiaoyan, remarked that the launch of this ETF is not only a significant step in product innovation but also a key practice in deepening their internationalization strategy by leveraging Hong Kong's role as a "super-connector."
She noted that the index aggregates 100 of the most growth-potential technology firms in the Hong Kong market, and the company hopes this product will open an efficient window for global investors to access the future of Chinese technology.
She concluded by stating the company's commitment to driving further product innovation and actively serving the diverse asset allocation needs of global investors, contributing to the prosperity and openness of Hong Kong's financial market.
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