Hong Kong Exchanges and Clearing (HKEX) launched indexes tracking 40 AI-linked and 30 semiconductor-related Hong Kong-listed companies on 23 October, and signed a deal to license the AI index for mainland Chinese exchange-traded funds (ETFs), Reuters reported. The exchange named China Southern Asset Management Company as its licensing partner when it announced the new products, The Standard reported.
Key points
- The HKEX Artificial Intelligence Index tracks 40 Hong Kong-listed companies across five parts of the AI value chain.
- The HKEX Semiconductor Index tracks the 30 largest semiconductor-related companies listed in Hong Kong.
- China Southern Asset Management has licensed the AI index for ETFs in mainland China.
HKEX AI index spans five layers
The HKEX Artificial Intelligence Index is designed to measure the performance of Hong Kong-listed companies with high exposure to the AI value chain, according to HKEX as reported by The Standard. Its 40 constituents span chip design, data centres, AI infrastructure, AI models, and software and physical applications. The scope takes the benchmark beyond companies developing AI models to include businesses supplying the computing capacity and components used elsewhere in the value chain.
Reuters reported that the selection methodology favours companies with significant AI-related research and development and capital spending. Those criteria put investment in AI alongside a company’s industry activity in the index’s constituent selection. The benchmark covers companies listed in Hong Kong, while the licensing agreement concerns funds offered in mainland China.
Semiconductor index tracks 30 Hong Kong listings
The separate HKEX Semiconductor Index measures the performance of the 30 largest semiconductor-related companies listed in Hong Kong. Its coverage runs from semiconductor manufacturing and equipment to electronic components, computing hardware and storage. That gives the exchange a chip-industry benchmark alongside the broader AI index, which also includes chip design among its five areas.
The two indexes therefore cover different sets of activities: the AI benchmark follows companies across the technology’s value chain, while the semiconductor benchmark is organised around the chip industry. Both measure the performance of Hong Kong-listed companies.
China Southern licenses the HKEX AI index
The agreement with China Southern Asset Management concerns ETFs based on the HKEX Artificial Intelligence Index in mainland China. It extends the use of that Hong Kong-listed-company benchmark to fund products for mainland investors. The licensing arrangement reported by Reuters applies to the AI index; HKEX launched the semiconductor index as a separate benchmark.
Richard Leung, HKEX group chief information officer, said the partnership with China Southern Asset Management increases investor choice and strengthens Hong Kong’s markets, The Standard reported.
