Hang Seng Tech Index For Technology Companies Launched In Hong Kong
A new index of technology sector stocks, which includes the securities of two of the most expensive Chinese companies, was launched in Hong Kong on Monday.
The Hang Seng Tech Index, which tracks the performance of shares of 30 technology companies traded in Hong Kong, ended down 1.3% after rising 2.2% in the morning session, while the broader Hang Seng index fell 0.4%.
Shares of the three largest components of the technology index - Tencent Holdings Ltd., Meituan Dianping, and Xiaomi Corp. - fell in price at the end of trading, while the securities of Alibaba Group Holding Ltd. closed unchanged. These four companies account for a third of the index's volume.
The index compiler Hang Seng Indexes Co. on July 20 announced its intention to launch a new indicator, after which many of the shares included in its composition significantly strengthened.
The three largest Chinese companies listed on the US stock exchange are Alibaba, JD.com Inc., and NetEase Inc. - over the past nine months, they have placed their shares in Hong Kong and conducted secondary placements there. The share of Chinese companies currently accounts for almost 78% of the capitalization of the Hong Kong stock market, compared to 67.5% at the end of 2018 and about 57% a decade ago, according to data from the exchange, which leads Dow Jones.
Last week, Chinese financial technology giant Ant Group Co., which owns the mobile payment system Alipay, said it plans to hold two IPOs - in Hong Kong and Shanghai.