The Zhitong Finance App learned that today (October 7), Hang Seng Technology Index Company announced a market consultation summary of the revised calculation method plan for the Hang Seng Technology Index. Combining opinions from different sectors of the market and after review and review by the Hang Seng Index Advisory Committee, Hang Seng Index announced that it will implement six revisions in the following two major directions: 1) expand the coverage of technology topics; and 2) introduce a group stock selection mechanism.
1) Expanding the coverage of science and technology topics
Eliminate industry requirements
Adopting the amendments proposed earlier, disqualified candidate companies must fall under the requirements of the five designated industries in the Hang Seng Industry Classification System.
Revise the six major science and technology themes
Adopt the revised plan proposed earlier, integrate and expand existing themes, and add cutting-edge technology themes. The revised six major technology themes are: 1) digital platforms and solutions; 2) artificial intelligence; 3) advanced hardware; 4) robotics and automation; 5) cloud; and 6) cutting-edge technology.
Technology sub-themes expanded from 16 to 24
Adopt the revised plan proposed earlier to increase the number of science and technology sub-themes from 16 to 24 to match the revisions of the above six major science and technology themes.
2) Introducing a group stock selection mechanism
Set the stock selection category as a component of the Hang Seng Composite Large and Medium Cap Index
Adopt the revised plan proposed earlier to revise the scope of stock selection from companies listed on the main board to constituent stocks of the Hang Seng Composite Large and Medium Cap Index.
Adopt a two-group stock selection mechanism
The adjustments were made on the basis of the revised plan proposed earlier, and a two-group stock selection mechanism was used, using market capitalization ranking and revenue growth ranking as the stock selection criteria, respectively. Non-existing constituent stocks must also meet the requirement for an average daily turnover of at least HK$100 million over the past three months; constituent stocks selected based on revenue growth rankings must have recorded an annual revenue of at least HK$500 million in the last two consecutive financial years.
Number of constituent stocks increased from 30 to 50
Adopting the revised plan proposed earlier, the number of constituent stocks was increased from 30 to 50, of which the top 40 were selected based on market capitalization rankings, and the remaining 10 were selected according to the revenue growth ranking of the past 12 months.
The above revisions will be implemented during the index review up to September 30, 2026, and will take effect during the index adjustment in December 2026.
Hang Seng Indices began a one-month market consultation on the revised plan in August of this year, and received responses from industry stakeholders in Hong Kong, the Mainland and other regions, covering asset management companies, traders and market makers, structured product issuers, enterprises and industry organizations. According to the results of the consultation, each proposal was supported by more than 80% of respondents.