A brand new share index targeted on China’s know-how giants has been launched by Hong Kong’s stock market.
The Grasp Seng Tech Index went dwell on Monday and contains web giants akin to Tencent, Alibaba and JD.com.
It should characteristic 30 of the most important tech companies listed in Hong Kong, that are among the many world’s largest firms.
The brand new index comes as Chinese language tech companies face larger scrutiny within the US, with many listings in each Hong Kong and China.
Jack Ma, the billionaire founding father of Alibaba, just lately introduced plans to listing its affiliate monetary arm Ant Group in Hong Kong.
Alibaba, NetEase and JD.com are three tech giants which have just lately listed in Hong Kong amid rising tensions between the US and China. They’re included within the new Grasp Seng Tech Index.
The Ant Group is described because the world’s most respected unicorn – a start-up that has grown to a value of greater than $1bn (£778m).
As soon as publicly listed, it also needs to transfer into the index.
Ant Group, a monetary know-how (fintech) agency, additionally desires to listing on China’s tech-centric Star stock market because it shuns a US stock market itemizing.
Analysts say the Grasp Seng Tech index will entice traders to different Hong Kong tech stocks and look past the extra well-known Grasp Seng Index which is dominated by banks, property companies and vitality firms.
“The brand new index goals to rival and beat the Nasdaq within the US marketplace for Chinese language tech giants,” mentioned Bruce Pang, head of macro and technique analysis for China Renaissance Securities.
The Grasp Seng Tech Index will monitor Hong Kong-listed firms which have excessive enterprise publicity to chose know-how themes, together with the web, fintech, cloud, e-commerce and digital actions.
What does it imply for traders?
Funding consultants say will probably be extra handy for traders who need to purchase Chinese language tech firms listed in Hong Kong now they’ve their very own index.
There’s a large urge for food for know-how stocks like Alibaba and Tencent, which have usually carried out effectively throughout the coronavirus pandemic as extra individuals log on for purchasing and leisure.
The brand new index might set off the launch of specialized funding funds monitoring these 30 tech stocks, that are referred to as Trade Traded Funds (ETFs).
“This can be a nice and optimistic new addition, marking the continued development in China’s know-how area and its thoughts and portfolio share of native and worldwide traders alike,” added Andy Maynard, managing director at China Renaissance funding bank.