The Hang Seng Tech Index was launched on the 27 July 2020. It introduces a new way for an investor to gain ownership of 30 technology companies listed in the Hang Seng, with the largest market capitalisation. While the index is relatively new, component companies have been around for some time. Hence, a retail investor can explore the index components and see what kind of strategy works with Hong Kong Technology stocks.
tl;dr: the top 3 metrics from the back-test results were: Lower Profit Margins, High Volatility, High Profit Growth. But before you jump in, I share safer and better ways to gain exposure to HK tech companies in my analysis below.
Why Back-test? In this article, I explore the use of several investing factors to pick a subset of Hong Kong Technology stocks that could be worth investing. I do not have Doctor Strange’s ability to travel to the...