Hong Kong's new tech index falls on debut as rally cools

Analyst expect long-term boost to trading volume despite lukewarm start

Analysts expect the new Hang Seng Tech Index will eventually help boost trading volumes in Hong Kong. © Getty Images

NARAYANAN SOMASUNDARAM, Nikkei Asian Review chief banking and financial correspondent

July 27, 2020 15:29 JST

Updated on July 27, 2020 18:11 JST

HONG KONG -- A new index in Hong Kong focused on China's technology giants, including Alibaba and Tencent, dropped over 1% on its first day of trading.

The Hang Seng Tech Index, which launched on Monday and tracks the 30 largest tech companies listed in Hong Kong, declined as the recent surge in stocks it tracks started to cool. Food delivery and online booking company Meituan Dianping and smartphone maker Xiaomi led the losses, with each declining 3%.