Hong Kong Stock Technology Investment ushered in a new “coordinate”, the Hong Kong Stock Exchange Technology 100 Index was released, and Lenovo (00992) and Ningde Times (03750) were selected

The Zhitong Finance App learned that on December 9, Hong Kong Exchanges and Clearing Limited announced the launch of the Hong Kong Stock Exchange Technology 100 Index. The Hong Kong Stock Exchange Technology 100 is the first Hong Kong stock index launched by the Group.

According to reports, the index clearly sets hard liquidity indicators and soft thresholds for R&D growth: constituent stocks must meet the average daily turnover of not less than HK$20 million over the past six months, and R&D investment in the past two years account for more than 3% or annual revenue growth of more than 5%.

Based on this screening criteria, a number of popular individual stocks such as Tencent Holdings (00700), Alibaba-W (09988), Ningde Times (03750), Lenovo Group (00992), Xiaomi Group-W (01810), BYD (01211), Meituan-W (03690), SMIC (00981), and Pharmaco-Ming Kangde (02359) were selected.

According to the Hong Kong Stock Exchange announcement, the Hong Kong Stock Exchange Technology 100 Index is a broad-based stock index that tracks the performance of the 100 largest technology companies listed on the Hong Kong Stock Exchange by market capitalization. Its constituent stocks cover the six major innovation themes of artificial intelligence, biotechnology and pharmaceuticals, electric vehicles and intelligent driving, information technology, internet and robotics. Biotech companies listed under Chapter 18A of the Listing Rules or specialty technology companies listed under Chapter 18C are also eligible for inclusion.

In terms of the preparation method, the Hong Kong Stock Exchange stated that when evaluating whether a company meets the technology theme, the main considerations include the nature of its core business, revenue distribution, and industry classification. The index is calculated using the market capitalization weighting method, and the maximum weight of each constituent stock is set at 12%. Index constituent stocks are adjusted every half year (June and December), and the data cutoff dates are the last trading days of April and October of each year, respectively.

The Hong Kong Stock Exchange has requirements on the liquidity and fundamentals of constituent stocks. In terms of liquidity, according to the Hong Kong Stock Exchange index compilation plan, securities with an average daily turnover of less than HK$20 million in the past six months and ranked in the last 10% from highest to lowest in the past six months will be excluded.

In terms of fundamentals, securities where R&D expenditure in the past two fiscal years accounted for less than 3% of revenue and revenue growth of less than 5% over the past two fiscal years will be excluded. However, companies listed under Chapter 18A or Chapter 18C may be exempted from fundamental requirements.

This threshold design makes it easy to select technology targets with determined market popularity and growth potential. It will also further promote the development of Hong Kong stock related products in the mainland China market, meet the allocation needs of south-bound capital in the technology sector, and meet the strong demand of mainland investors to seize technology investment opportunities in the Hong Kong stock market.