Hong Kong Exchanges and Clearing (HKEX) launched the HKEX Tech 100 Index, reports Caixin. The index is a new benchmark that tracks the performance of 100 of the largest technology companies listed in the city by market value.
The index is the first independently developed Hong Kong equity benchmark as the exchange seeks to expand its index business. HKEX also announced an agreement with E Fund Management, authorizing the firm to launch a Chinese mainland-listed exchange-traded fund (ETF) that will track the new index.
Sources said that the index is attractive because all of its constituents are eligible for Stock Connect, the cross-border trading link between Hong Kong and the Chinese mainland. This allows mainland asset managers to launch tracking products without using their Qualified Domestic Institutional Investor quotas, which provide capacity for mainland fund managers to invest offshore.