Hang Seng Tech Index Expansion Could Increase Benchmark to 50 Stocks

A proposed Hang Seng Tech Index expansion would increase the Hong Kong technology benchmark to 50 constituents from 30 and introduce revenue growth as an additional selection criterion.

Hang Seng Indexes Company has proposed a dual-selection framework under which the 40 largest eligible companies by market capitalisation would qualify, while another 10 constituents would be selected according to revenue growth.

The index compiler said the changes would improve representation of rapidly growing technology businesses that may still have relatively small market capitalisations.

Under the existing framework, high-growth technology companies can struggle to qualify because market value plays a central role in index selection.

Adding a growth-based component could therefore broaden the benchmark's exposure to emerging technology companies while reducing reliance on market capitalisation alone when determining index membership.