Why did the Hang Seng Technology Stock Index skyrocket?

The Hang Seng Technology Index rose mainly because overseas funds hedged the risk of RMB falling by holding assets denominated in Hong Kong dollars. Recently, the constituents of the Hang Seng Technology Stock Index have a desire to reverse the trend. The main reason for the rise of the Hang Seng Technology Stock Index is that overseas funds hedge the risk of RMB decline by holding assets denominated in Hong Kong dollars. With the supervision beginning to ease the expectation of overlapping appreciation of the Hong Kong dollar, it is a wise choice for funds to flood into the constituents of the Hang Seng Technology Index today. The smartest funds in the market will definitely choose the industry layout with the least impact of the epidemic.

Component of Hang Seng Science and Technology Index

Hang Seng Technology is composed of the 30 largest listed companies in Hong Kong, which is highly related to the theme of science and technology, covering network, financial technology, medicine, cloud, e-commerce and digital business, and has strong growth value.

Based on the Hong Kong stock market, the Hang Seng Science and Technology Index frames the scientific and technological attributes through themes and innovation indicators, and is included in the high-quality companies in the field of scientific and technological segmentation. The new economic attribute is remarkable, which is a new benchmark for the science and technology sector of Hong Kong stocks. Moreover, about 40% of the constituent stocks in the Hang Seng Technology Stock Index are high-quality technology stocks other than Hong Kong Stock Connect.