Hong Kong is launching a replacement Nasdaq-like technology index. It’s a sign that the Asian financial hub, caught in a battle for its future between East and West — is prepared to embrace its role as a gateway for China’s tech industry to the world.
Hang Seng Indexes, the city’s leading index compiler, on Monday announced the creation of a new benchmark that will track the 30 largest tech companies that trade in Hong Kong. The Hang Seng tech Index is anticipated to debut next week.
Hong Kong’s role as a global financial centre has been shaken in recent months by tensions between the United States and China, which have intensified as Beijing moves to tighten its grip on the city.
A sweeping national security law that China imposed on the city has been criticized by some as undermining the political and legal freedoms that have existed since United Kingdom handed the former colony to China in 1997.
The tech index, though, suggests that Hong Kong is wanting to shore up its position as the geopolitical fallout spreads.
The city has recently become increasingly attractive to Chinese firms that fear for their business prospects in the united states. Alibaba (BABA), NetEase (NTES) and JD.com (JD) — all of which trade in new york — have in recent months held secondary listings in Hong Kong.
And Ant Group, the company behind the Chinese mobile payments business Alipay, announced Monday that it’s chosen both Hong Kong and Shanghai for its initial public offering.
of China’s biggest tech champions, together with Alibaba, Tencent (TCEHY), Meituan Dianping and Xiaomi, can all be included on the new tech index. they will have a combined weighting of more than 33%.