Hong Kong seeks tech exposure to take on Nasdaq amid Beijing’s rising AI dominance

Hong Kong is expanding its stock market's technology exposure to challenge Nasdaq's dominance in the global AI trade, as mainland Chinese hardware companies like optical transceiver makers line up for listings after Zhongji Innolight's debut last month. Hang Seng Indexes Company proposed revamping the Hang Seng Tech Index to add growth-potential constituents and revenue growth criteria, while CICC suggests more tech additions to the benchmark Hang Seng Index in its quarterly review. The city aims to leverage China's lead in AI open-source models and humanoid robotics to attract listings and rival major US exchanges.

Hong Kong seeks tech exposure to take on Nasdaq amid Beijing’s rising AI dominance The city is looking to expand stock benchmarks in an effort to challenge Nasdaq’s tech dominance Zhang Shidong /author/zhang-shidong in Shanghai Hong Kong is doubling down on efforts to increase its stock market’s exposure to the technology industry, as the city endeavours to catch up in the global artificial intelligence trade and potentially even challenge the Nasdaq. A slew of mainland Chinese hardware tech companies – particularly the makers of optical transceivers used in AI data centres – are lining up for stock offerings in the city after the debut of Zhongji Innolight last month, reshaping the dynamics of listings that, until now, have been largely limited to Chinese internet platforms. Hang Seng Indexes Company proposed a revamp of the Hang Seng Tech Index this week to add more constituents with growth potential. It also suggested adding revenue growth in its inclusion criteria to better accommodate smaller companies with growth potential. The index compiler could also add more tech companies to the benchmark Hang Seng Index in its quarterly review later this month, according to China International Capital Corporation CICC . The Hong Kong stock market has been left behind in the AI trade this year, due to the dominance of Chinese internet platforms that rely on e-commerce segments as their major revenue sources, and increasing tech exposure may reverse this trend. The city is able to tap China’s leading position in AI open-source models and humanoid robotics for new listings, enabling it to rival Nasdaq or the New York Stock Exchange.