Advertisement
Hong Kong stock market
BusinessChina Business

Hong Kong seeks tech exposure to take on Nasdaq amid Beijing’s rising AI dominance

The city is looking to expand stock benchmarks in an effort to challenge Nasdaq’s tech dominance

2-MIN READ2-MIN
2
Listen
A view of the Hong Kong skyline on July 22. Photo: Jonathan Wong
Zhang Shidongin Shanghai

Hong Kong is doubling down on efforts to increase its stock market’s exposure to the technology industry, as the city endeavours to catch up in the global artificial intelligence trade and potentially even challenge the Nasdaq.

Several mainland Chinese hardware tech companies – particularly producers of the optical transceivers used in AI data centres – are lining up for stock offerings in the city after the debut of transceiver maker Zhongji Innolight last month, reshaping the dynamics of listings that, until now, have been largely limited to Chinese internet platforms.
Hang Seng Indexes Company proposed a revamp of the Hang Seng Tech Index this week to add more constituents with growth potential. It also suggested adding revenue growth in its inclusion criteria to better accommodate smaller companies with growth potential.

The index compiler could also add more tech companies to the benchmark Hang Seng Index in its quarterly review later this month, according to China International Capital Corporation (CICC).

While the Hong Kong stock market has not been a prime beneficiary of this year’s booming AI trade – its largest listed tech companies are Chinese internet platforms that rely on e-commerce segments as major revenue sources – increasing tech exposure may reverse this trend.

By tapping China’s leading position in AI open-source models and humanoid robotics for new listings, the city could eventually rival Nasdaq or the New York Stock Exchange.

Advertisement
Select Voice
Select Speed
1.00x