“ATMXS” spells the future of HK tech

First, the good news. Hong Kong will have a Nasdaq-equivalent index.
But, the sad news is almost all component companies are from mainland, not Hong Kong in the upcoming Hang Seng Tech Index.
No worry. Hong Kong can draw some comfort from what is known as the Wimbledon effect, which is listed one of the four Grand Slam tennis tournaments despite a lack of British presence most of the time.
Those investors who made money this year are mostly on China plays anyway, in particular tech stocks.
Yesterday, Alibaba Group surged seven per cent and Tencent Holdings surged eight per cent to fresh high while Meituan Dianping surged nine per cent. The three, dubbed as ATM, contributed to most of the gains ahead of the Hang Seng Tech Index to be debuted next Monday.
As of the year-to-date, Alibaba Group went up 24 per cent, followed by a 50 per cent gain for Tencent Holdings, and a 100 per cent return for Meituan Dianping.
By contrast, Hang Seng Index lost about 10 per cent during the period.
China’s gain is really Hong Kong’s loss. Check the Hong Kong banking and property counters and one will get the picture.
The Hang Seng Tech Index is made up of the top 30 technology plays listed in Hong Kong, whose business spans from network, fintech, cloud, e-commerce and digital business.
As with the famous acronym FAANG (Facebook, Amazon, Apple, Netflix and Alphabet (formerly Google)), the top five Hang Seng Tech Index will make up of ATMXS, which stands for Alibaba, Tencent, Meituan, Xiaomi and Sunny Optical.
The Hang Seng Tech Index is a barometer for how money has been chasing up the mainland technology sector that benefits from the new normal in the current pandemic.
The index also benefits in the homecoming exercise of Nasdaq-listed giants like JD.com and Netease for secondary listing this year.
More mainland tech giants are in the pipeline. Ant Financial, owned by Alibaba Group founder Jack Ma, is probably going to be the largest IPO in the world this year as the fintech player is targeting on a US$200 billion valuation.
Even Didi, the China’s answer to Uber Technologies, is said to be considering an IPO, although car-hailing, along with other co-sharing new economy play, is not exactly a hot thing under the epidemic.
But China tech is hot. Welcome to the crazy summer rally!
-- Contact us at [email protected]
-
How do you solve the math question of vaccine bubble? Ben Kwok
Imagine there is a cha chaan teng with eight tables, two of which are in the clean zone, a new term that will allow eight diners till 2am under the vaccine bubbles. Now six diners came in, three of
-
A ban on blank ballots would be terrible for sound governance Brian YS Wong
With the seismic political changes in Hong Kong has come the increasingly apparent stance from Beijing – the issues that permeate this city can and ought to be attributed to its intransigent,
-
Promoting green hiking in Hong Kong Dr. Winnie Tang
As Hong Kong people cannot travel aboard freely under the COVID-19 epidemic, they switch to local hiking activities instead, crowding countryside hotspots and creating garbage mountains. In March
-
Vetting election candidates or a witch-hunt? Michael Chugani
Opposition politicians thinking of competing in December’s Legislative Council elections must study Justice Secretary Teresa Cheng Yeuk-wah’s warning last week. It seemed more a threat than a warning.
-
Which is more popular–BioNTech or Sinovac? Ben Kwok
You are what you take when it comes to vaccination against Covid-19. I estimate most people in Hong Kong are asked at least three times a day whether you would consider to take Sinovac or BioNTech
-
Promoting green hiking in Hong Kong
-
The challenge of big tech finance
-
Green is not the new black; it is here to stay
-
A ban on blank ballots would be terrible for sound governance
-
China sanctions can bite
-
Pandemic elevates the role of social capital in economic growth
-
Saving Myanmar
-
How do you solve the math question of vaccine bubble?