Hang Seng TECH Index Family's "Dual-Track Expansion": Composite Indexes Launched, Flagship Index Revision Imminent

On September 23, 2026, Hang Seng Indexes Company launched eight new indexes in a single day. The debut of the Hang Seng TECH Composite Index series, together with the revision to the compilation methodology of the Hang Seng TECH Index that entered consultation a month earlier, constitutes the most significant round of structural adjustment to the Hang Seng TECH index family in recent years. Over the same period in which the index compilation rules changed, the Hang Seng TECH sector has been going through several weeks of valuation pullback and capital reallocation.

Eight new indexes launched: composite and thematic indexes in parallel

Of the eight indexes launched on September 23, three belong to the Hang Seng TECH Composite Index series: the Hang Seng TECH Composite Index, the Hang Seng TECH Composite LargeCap Index and the Hang Seng TECH Composite MidSmallCap Index. The other five are thematic indexes: the Hang Seng Semiconductor Industry Index, the Hang Seng Hard TECH Index, the Hang Seng Computing Power Theme Index, the Hang Seng HK Equities Computing Power Theme Index and the Hang Seng A-Share Semiconductor Material Theme Index. The new indexes are calculated every two seconds and published in real time.

The positioning of the Hang Seng TECH Composite Index differentiates it from the Hang Seng TECH Index launched in July 2020. According to the Hang Seng Indexes Company website, the top ten constituents of the Hang Seng TECH Composite Index exclude JD-SW (9618.HK) and BIDU-W (9888.HK) and include CHINA MOBILE (0941.HK) and BEONE MEDICINES (6160.HK).

At the industry classification level, the Hang Seng TECH Composite Index is more granular than the existing Hang Seng TECH Index. The industry scope of the Hang Seng TECH Index covers five major sectors—industrials, consumer discretionary, healthcare, financials and information technology—while the Hang Seng TECH Composite Index further splits healthcare into subcategories such as pharmaceuticals, biotechnology, pharmaceutical and biotechnology contract services, medical devices and supplies, and medical and medical aesthetic services. The compilation rules table provided by the user shows that "industrial engineering" and "telecommunications" are marked with asterisks among the index's eligibility criteria, and "media and entertainment" is also included, indicating a broader industry coverage than the existing Hang Seng TECH Index.

Flagship index revision: expansion from 30 to 50 constituents, consultation period closed

Behind the launch of the composite index series is the advancement of the revision to the Hang Seng TECH Index's own compilation methodology. On August 10, 2026, Hang Seng Indexes Company issued a consultation paper on the revision of the Hang Seng TECH Index's compilation methodology, with the consultation period running until September 18; the results are expected to be announced by the end of September, and constituent changes will take effect at the December 2026 index rebalancing.

According to the consultation paper, the core revision plan includes three items: the number of constituents will increase from 30 to 50; the industry restrictions under the original Hang Seng Industry Classification System will be removed, with six major tech themes redefined—digital platforms and solutions, artificial intelligence, advanced hardware, robotics and automation, cloud, and frontier technology; and tech sub-themes will expand from 16 to 24. A dual-track stock selection mechanism of "market cap group + revenue growth group" is introduced: 40 stocks in the market cap group are selected by market capitalization ranking, and 10 stocks in the revenue growth group are added from companies not selected by market cap based on revenue growth over the past 12 months.

Consultation paper data show that after the expansion, the number of advanced hardware constituents will increase from 5 to 15 and artificial intelligence constituents from 3 to 6, making the distribution of the 50 constituents across tech themes more diversified.

It is understood that HTSC's strategy research has called this revision the most significant structural reform of the Hang Seng TECH Index "since its launch in 2020". As of June 2026, global passive assets under management tracking the Hang Seng TECH Index stood at about USD 40.4 billion. According to CITIC SEC's estimates, if the revision plan is implemented, based on a simulated aggregate weight of 11.5% for the 20 new constituents, the theoretical passive allocation demand corresponding to this expansion is about HKD 36 billion, of which the market cap group and the revenue growth group account for about HKD 28.5 billion and HKD 7.5 billion respectively.

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