Hang Seng Tech Index Top 30 Companies in 2021
Tech stocks always lead the growth of many investments including the NASDAQ100 index which outperformed even the S&P 500 many times. On this page, we aresharing the top 30 companies listed on the Hang Seng Tech Index, a new indexlaunched last year.Many investors find great potential with Chinese stocks. It’s undeniable thatChina is one of the most powerful economies in the world. China’s technologywill never be left behind. From state-of-the-art robotics to cutting-edgeartificial intelligence, their technology continues to blossom.Their internet users alone are gigantic. South China Morning Post reportedthat China has 900 million internet users in 2020, larger than the populationsof the United States, Russia, Mexico, Germany, the United Kingdom, France, andCanada combined.
What is Hang Seng Tech Index?
Hang Seng Tech Index tracks the 30 largest tech companies listed on the HongKong stock exchange. This stock market index comprises of companies spanningin different technology industries including internet, fintech, cloud,eCommerce, and digital activities.
Top 30 Companies on the Hang Seng Tech Index in 2021
Hang Seng Tech index components go through a portfolio re-balancing. Overtime, the list may add or remove new candidates. The companies are screenedthrough strict criteria including whether they operate through a tech-enabledplatform (through internet or mobile), their research and development expensesto revenue ratio, revenue growth, and market cap.Company| Code —|— Ali Health| 241 Kingdee Intl.| 268 BYD Electronic| 285 ASM Pacific| 522 Tencent| 700 China Lit| 772 Tongcheng-Elong| 780 Ming Yuan Cloud| 909 SMIC| 981 Lenovo Group| 992 Kuaishou| 1024 Hua Hong Semiconductor| 1347 Koolearn| 1797 Xiaomi| 1810 PA Good Doctor| 1833 Weimob Inc.| 2013 AAC Tech| 2018 Sunny Optical| 2382 Autohome| 2518 Meituan| 3690 Kingsoft| 3888 ZA Online| 6060 JD Health| 6618 Haier Smartphone| 6690 JD.com| 9618 Bilibili| 9626 GDS Holdings| 9698 Baidu| 9888 Alibaba| 9988 NetEase| 9999
1. Tech Stocks Investors
If you want to diversify your tech portfolio with Chinese tech stocks likeAlibaba, Tencent, Xiaomi, JD, Meituan, and the like, why not? These companiesare enormous and are favorites by many traders, too—no wonder why they arelisted on numerous stock exchanges worldwide.According to the Hang Seng Index press release, “from back-testing data, HangSeng Tech Index would have achieved significant returns of 36.2% for the fullyear of 2019 and 35.3% for the first half of 2020.”
2. Traders with business exposure in China
If you want to have business exposure in China, and you believe its economyand tech businesses will continue to innovate, then you can trade with thesestocks. You should also consider being always updated with what’s going onabout the market and economy of China and Hong Kong.
3. Active Traders
Because these large market cap tech stocks create more price fluctuations,active traders can find a lot of opportunities riding the momentum, swing inand out, and scalping trade positions.
4. Long Term investors
Of course, there will always be investment prospects for long term investorsof Hang Seng tech stocks. Besides investing in Hang Seng tech index, you canalso select your top equities. If you want to go long, with buy and holdstrategy, you can grow some profit choosing the best stocks suited for youranalysis.We hope that some ETFs that track the performance of the Hang Seng tech indexwill be introduced soon.
How to Trade Chinese Tech Stocks?
You can trade these stocks on the Hong Kong stock exchange and other stockexchanges. We are trading some of these instruments using an online platformcalled eToro. Many international companies are also available on thisplatform.67% of retail investor accounts lose money when trading CFDs with thisprovider. You should consider whether you can afford to take the high risk oflosing your money.
World’s Top Indexes:
Disclaimer: This content is for information purposes only and should never beconsidered as professional advice. Every investor has a different risktolerance and goals. Always do your own research before making an investment.All investments have risks. Risk only the money you’re not afraid to lose.Top 5 ETFs to buy for Singapore Investors (2021)A couple of weeks ago, I wrote a post where I basically said that “PassiveInvesting is Dead”.That got a lot of feedback from you guys, and I think there was a bit of amiscommunication on my part.So just to clarify – I don’t mean that passive investing is dead, dead.Passive / Index investing by its very definition tracks the index performance.Whatever the S&P500 returns that year, you will get, minus brokerage and ETFfees.That doesn’t change, so passive investing will never really die.
Passive Investing: Looking at the bigger picture
But the broader macro context matters too.The past 30 years was just a massive bull market in bonds, with US interestrates going from 15% to 0%.In a secular bull market like that, all asset prices go up – both bonds andequities.That’s great for index investing, because you hold the average, and the entireasset class goes up.It’s a rising tide lifts all boats scenario, where the best strategy was toown the average.So passive / index investing did very well the past 30 years, and outperformedmany active strategies (especially the past 10 years when QE came into play).But going forward, we’re moving into a rising interest rate scenario, wheremonetary policy no longer reigns supreme.Rather, it is fiscal policy (government spending) that reigns supreme.And my view is that in a fiscal dominated paradigm, passive investing will notoutperform active investing to the same extent it did the past 30 years.In other words – It *should* become easier for active investing to outperformpassive investing going forward.Take 2021 for example. Cyclical plays like energy and financials did very wellthis year. Growth tech didn’t do so well.If you own the S&P500, you’re owning the average, so the cyclicals go up, buttech underperforms, so you get average performance.If you active invest there is room to tilt the allocation towards cyclicalsand capture more upside.
Really depends on the kind of investor you are
But, and here’s the big caveat – it really depends on the kind of investor youare.To succeed at active investing, you need to get the calls right.So if you recognized in early 2021 that cyclicals would outperform, you wouldhave done well.But if you didn’t, or got the call wrong, passive investing would have been abetter option.So yes, there will always be a place for passive investing, for investors whodon’t want to active invest.Don’t forget, when you get average index returns, you’re already outperforming50% of the other investors out there.
iShares Core MSCI China ETF 2801
I included Vanguard Total China ETF (3169) in my recent article on where toinvest $100,000.Unfortunately, as some of you have pointed out, Vanguard is pulling out of HKand will be delisting those ETFs in the coming year or two, so it’s probablybest to avoid Vanguard for the time being.The next best thing I found was MSCI China.I like it because it has exposure to the onshore China listed A shares, andHong Kong H shares, and the US listed shares.Expense Ratio is not cheap at 0.61%, but that’s usually the case for an ETFthat has exposure to onshore A shares.As with any China ETF, the tech names are a big part of it, with big exposureto the usual Tencent, Alibaba, Meituan, JD, Baidu etc.Historical performance is again very strong, but don’t place too much emphasison these numbers.As investors we invest in the future, not in the past. Historical numbersdon’t mean much.One thing to note is that the fund size is not big, about 5 billion HKD. Sodon’t expect the same kind of liquidity you get with the SPY.The other problem is that the China market isn’t as efficient as the US yet.So this isn’t like a S&P500 or NASDAQ100 where you get very efficient exposureto the China economy.China’s economy is still developing and opening up, and the industry is not asmature in the US.Expect more volatility and inefficiencies in markets like that.BTW – we share commentary on financial markets every week, so do sign up forour mailing list, its absolutely free (goes out every Sunday).Don’t forget to join our Telegram Channel and Instagram or (YouTube)!