Hang Seng Indexes Co. has launched a market consultation on potential changes to the Hang Seng Tech Index methodology, according to a paper published Monday.
The proposed changes aim to broaden coverage of the technology theme, refine constituent selection, and expand the number of stocks in the index as Hong Kong's technology sector evolves.
Under the proposal, the index would increase to 50 constituents from 30. It would also introduce a two-stream selection process, with 40 stocks selected based on market value and 10 based on sales growth.
Subject to the final decision of the HSI Advisory Committee, the changes are expected to be announced by the end of September and implemented in the index review for the period ended Sept. 30.
Market participants have until Sept. 18 to submit their responses to the consultation.