Hang Seng Indexes Company recently announced that it will make significant adjustments to the Hang Seng Information Technology Industry Index, renaming it the "Hang Seng Semiconductor Industry Theme Index" and implementing a series of updates to its compilation methodology. This change is not merely a name revision; it involves more precise industry classification, optimization of constituent screening methods, and weighting allocation rules, aiming to better reflect the development dynamics and market trends of the semiconductor industry.

According to the announcement released by Hang Seng Indexes Company, the new version of the index will alter its original purpose and stock selection scope. Firstly, the new index will focus on the semiconductor industry, with its coverage strictly limited to semiconductor-related sectors. This means that only companies truly closely related to the semiconductor industry can become constituents of the index. For investors, this adjustment will undoubtedly provide a clearer reflection of the semiconductor industry's market performance, avoiding interference from companies in the original information technology industry index that have little relevance to semiconductors.

Regarding the selection method for constituents, Hang Seng Indexes Company has proposed some updates, the most important of which are the addition of new criteria such as liquidity requirements, theme requirements, and buffer zones. The new constituent selection mechanism will place greater emphasis on companies' market liquidity, ensuring that selected companies have sufficient trading activity in the market, thereby enhancing the index's representativeness and trading transparency. Additionally, the buffer zone is designed to avoid frequent changes in index constituents, improving the index's stability and reducing the impact of short-term market fluctuations on the index.

Furthermore, the new compilation methodology explicitly sets the fixed number of constituents at 40 and imposes strict controls on the weight of each constituent, setting a cap on the weight ratio. This measure will prevent any single constituent from having an overly concentrated impact on the index, thereby maintaining the index's diversity and risk dispersion. Nevertheless, the Hang Seng Semiconductor Industry Theme Index will adjust the number of constituents, reducing the total from 45 to 33. This change means the index will focus more on the most representative and liquid semiconductor companies in the market.

According to the update plan released by Hang Seng Indexes Company, this new compilation methodology will take effect during the index review on June 30, 2025, and be officially implemented on November 7, 2025. At that time, the Hang Seng Semiconductor Industry Theme Index will undergo a constituent adjustment, with the number of index constituents under the new methodology reduced from the original 45 to 33. The adjusted index will be more targeted and reflective of the market.

In summary, the renaming and adjustment of the Hang Seng Information Technology Industry Index reflect Hang Seng Indexes Company's increasing emphasis on the semiconductor industry and align with global investors' demand for thematic industry investments. With the rapid development of the semiconductor industry, this new index is expected to become a focus for investors and provide a more representative and precise industry investment reference for the market.