Against the backdrop of a gradual recovery in Hong Kong stocks, the Hang Seng Stock Connect New Economy Index, which focuses on future development opportunities, is worth watching.

The Hang Seng Stock Connect New Economy Index aims to reflect the performance of listed companies in the new economy sector that are tradable through the Stock Connect program. So, what makes the new economy sector "new"?

The "newness" of the new economy is reflected in various aspects such as products, services, models, and business formats. For example, companies related to the information economy, such as those providing system and software development and internet services; healthcare companies involved in pharmaceuticals, biotechnology, medical equipment, and services; green economy-related companies producing new energy materials like solar cells or utilizing non-traditional/renewable energy sources; as well as retail and financial companies primarily operating via internet platforms—all these belong to the new economy sector, showcasing strong development vitality and potential. The Hang Seng Stock Connect New Economy Index aligns with the direction of the times and continuously reviews and adjusts its industry coverage based on the evolution of the new economy concept to better reflect the sector's development.

According to Wind's primary industry distribution, as of the end of 2022, the constituents of the Hang Seng Stock Connect New Economy Index were mainly concentrated in three major new economy sectors: information technology, consumer discretionary, and healthcare, which together accounted for 95% of the index's weight. Therefore, the index can be seen as a one-stop solution for investing in the leading companies of the technology, consumer, and healthcare sectors.

As of December 31, 2022, among the 50 constituents of the Hang Seng Stock Connect New Economy Index were internet tech giants like Tencent, Meituan, Xiaomi, and Kuaishou; healthcare leaders such as Wuxi Biologics and CSPC Pharmaceutical Group; and semiconductor industry leader SMIC, among others.

Moreover, companies in the new economy sector typically exhibit higher earnings growth rates and may demonstrate greater elasticity during market rebounds. For instance, during the rebound from March 16 to April 4, 2022, the Hang Seng Stock Connect New Economy Index rose by 30.8%; and from November 1 to November 15, 2022, when the market hit a阶段性 high after bottoming out, the index surged by 30.1%.

Looking ahead, against the trend of promoting economic transformation and high-quality development, sectors related to the new economy—such as technology, healthcare, and consumer—are expected to enjoy broad market growth opportunities and promising profit prospects. The Hang Seng Stock Connect New Economy Index provides investors with a tool to conveniently invest in the leaders of the new economy赛道 and embrace future development directions, allowing them to share in the investment opportunities of Hong Kong stocks.