FOREX.com is excited to introduce our newest market offering – the Hong Kong Tech Index (HTI) CFD
Launched in July 2020, the Hang Seng Technology Index (HTI) is one of Hong Kong’s three major stock indices, offering a benchmark for the region’s fast-growing tech sector. The index tracks 30 of the largest and most influential Hong Kong-listed technology companies by market capitalization – from tech giants like Tencent, Alibaba, Xiaomi, Meituan, and BYD, to AI pioneers such as Semiconductor Manufacturing International Corporation (SMIC) and Baidu, as well as leading EV innovators like Xpeng, Li Auto, and NIO.
Often referred to as the “Hong Kong version of Nasdaq”, the HTI provides targeted exposure to the digital economy and cutting-edge industries driving Asia’s tech revolution.
The Hang Seng Technology Index (HTI) follows a market capitalization-weighted methodology, with each constituent stock’s weighting capped at 8%. The index undergoes quarterly reviews to adjust both its components and their respective weights, ensuring it remains reflective of market dynamics.
As of the close on 25 July Friday, the HTI gained 26% year-to-date. Since its April low, the index has surged 32%, officially re-entering a technical bull market.
It is worth noting that the Hang Seng Technology Index (HTI) typically exhibits a higher P/E ratio and greater volatility compared to the Hang Seng Index, while offering a lower dividend yield – characteristics commonly associated with growth stocks. This elevated volatility, however, often translates into more trading opportunities and market potential for active investors.
On a global scale, the HTI’s 2025 year-to-date performance has outpaced the three major U.S. indices. Factors such as the easing of U.S.-China trade tensions, supportive macroeconomic policies from China, and the revaluation of Chinese tech stocks driven by DeepSeek have collectively acted as strong catalysts for this year’s gains.
In the short term, the optimistic global market sentiment and ample liquidity are expected to remain supportive of Hong Kong stocks. In particular, policy uncertainty under the Trump administration and growing U.S. debt concerns may encourage investors to reduce exposure to U.S. assets and redirect attention toward Chinese markets, where the macro environment appears more stable.
In the medium to long term, the Hang Seng Technology Index (HTI) remains well below its 2021 peak, offering lower valuations and greater upside potential compared to indices like Nasdaq. Currently, the combined market capitalization of Chinese tech giants still lags behind the “Magnificent Seven” in the U.S. stock market. However, the rapid rise of Chinese technology companies—from chip manufacturing to large language models and AI applications—is expected to drive significant growth across the entire AI industry chain. This development could boost corporate profitability, market capitalization, and broader economic expansion.
As a result, the HTI represents a collection of high-quality core assets in China, making it an attractive instrument for global investors to participate in the growth of Chinese technology stocks and share the dividends of China's economic development.