The bourse wants proprietary indices to better capture China’s technology boom as traditional Hong Kong benchmarks trail regional peers
Hong Kong Exchanges and Clearing (HKEX) is expanding into the index business with plans to launch more proprietary benchmarks and related investment products, as traditional market gauges have lagged regional peers during the artificial intelligence-driven technology rally.
The operator of Hong Kong’s stock exchange will debut the first exchange-traded fund (ETF) tracking its HKEX Tech 100 Index on Friday. The index, launched on December 9, tracks the 100 largest technology companies listed in Hong Kong across six sectors, including AI, robotics and biotechnology.
HKEX is in discussions with issuers in Hong Kong and mainland China to launch more ETFs linked to the benchmark, while also exploring products ranging from futures to over-the-counter derivatives as it seeks to build an ecosystem around the index, said Richard Leung, the exchange’s group chief information officer, at a briefing on Thursday.
“With an increasing number of mainland tech firms seeking listings in Hong Kong, the market structure and investor demand are evolving,” Leung said.
“Developing our index business allows HKEX to provide a more representative, up-to-date tool that reflects market trends and empowers investors to participate in China’s innovation story.”
In addition to the HKEX Tech 100 Index, the exchange has launched three cross-market benchmarks: the HKEX Tech & US Tech 100, HKEX Bursa Malaysia Large Cap and HKEX KRX Semiconductor indices.
“As an exchange that sits on one of the largest repositories of market data, it is only natural for HKEX to develop indices that catalyse market liquidity,” said Gregory Yu, head of markets at HKEX.