The Hang Seng TECH Index captures the performance of technology companies listed on the Hong Kong Stock Exchange.
As a specialised subset of the broader Hang Seng Composite Index, it reflects the growing Hong Kong tech sector, covering firms engaged in digital services, internet commerce, software development, hardware production, and related innovative fields.
This index serves as a barometer for technological progress and digital disruption in the region, illustrating the rising prominence of tech-driven enterprises in Hong Kong and the greater Chinese market.
Hang Seng TECH Index Price & Chart
Unlike sectors such as consumer staples, technology stocks tend to be more volatile, yet they offer the potential for rapid growth. The Hang Seng TECH Index is comprised of some of the most influential technology names, including industry giants and emerging disruptors that are reshaping the digital landscape.
The index was launched in July 2020 and currently includes 30 companies.
S&P/ASX All Technology Index Performance
While the Hang Seng TECH Index struggled throughout most of the pandemic, 2024 marked somewhat of a turnaround for the index. While there was a dip between October and early January 2025, the index has made strong gains and is climbing higher once again. However, it still has a significant way to go before reaching its 2021 highs.
| Period | Total Return (as of February 2025) |
|---|---|
| 1-Year Return | +65.32% |
| 3-Year Return | -6.71% |
| 5-Year Return | -0.18% |
| 10-Year Return | – |
Hang Seng TECH Index Top 10 Companies
The index is reviewed half yearly and rebalanced quarterly.
| Company | Weighting |
|---|---|
| Xiaomi | 9.85% |
| JD.com | 8.08% |
| Alibaba | 7.82% |
| Tencent | 7.42% |
| Semiconductor Manufacturing International | 7.09% |
| Meituan | 6.70% |
| Kuaishou | 5.69% |
| Li Auto | 5.65% |
| NetEase | 4.96% |
| XPeng | 4.24% |
Hong Kong/China Tech Stocks Forecast
The Bull Argument: In an article in January 2025, Chatham House said, “The world should take the prospect of Chinese tech dominance seriously,” noting the reported breakthrough made by Chinese AI company DeepSeek.
“In many areas China now keeps pace with or possesses the technological edge. China is increasingly a technology leader rather than a follower and more than capable of innovation,” said the British think tank.
Overall, investors bullish on the sector in Hong Kong and China may argue that the pace of digital innovation will continue to drive growth, while the increasing adoption of cloud computing, artificial intelligence, and 5G connectivity could bolster earnings across the sector.
The Bear Argument: Looking at the bearish argument for the sector in the region, sceptics have and will caution that rapid technological change can lead to heightened volatility. Also, especially in the case of DeepSeek, many have questioned the validity of some of the claims.
In general, potential risks include regulatory clampdowns, particularly regarding data privacy and market dominance, as well as the impacts of geopolitical tensions on cross-border tech operations. Tariffs will surely have an impact, while competition from global technology giants may erode market share for some local players.
Our View: The Hang Seng TECH Index provides an investment opportunity in one of the forward-thinking sectors of the Hong Kong market. Although the technology space is marked by rapid growth and occasional fluctuations, the index represents a barometer of digital innovation and offers exposure to various well-known names, including some industry leaders. Investors should, however, be prepared for the inherent volatility of tech stocks and remain mindful of regulatory, geopolitical and competitive risks.
Who Should Invest in Hong Kong/Chinese Tech Stocks?
Investors interested in the index and the stocks it holds may want to take a look at ETFs, including the CSOP Hang Seng TECH Index ETF (which tracks the index) and the Value China Technology ETF, which holds some of the names included in the index.
Overall, the index is particularly suitable for:
- Growth-Focused Investors: Those seeking significant capital appreciation from high-growth technology companies.
- Tech Enthusiasts: Investors with a keen interest in the evolution of digital services, software, and hardware will find this index appealing. Those bullish on technologies such as AI and cloud computing will find it attractive.
Risk-Tolerant Individuals: Given its susceptibility to market swings, the index is best suited to those who can withstand short-term volatility in pursuit of long-term gains.
