Hong Kong tech listings grow as office expansion remains cautious

Hong Kong's business landscape is seeing divergent trends in the technology and real estate sectors. The number of technology companies listed in the city has grown by more than 80% since 2020, reaching 271 as of late August. In response, Hang Seng Indexes Company (HSIL) plans to expand the Hang Seng TECH Index from 30 to 50 constituents in December. The revised methodology will select 40 companies based on market capitalization and 10 based on sales growth. The sector is also seeing a shift in themes, with autonomous technology rising to 32.1% of the listed technology universe.

In the commercial real estate sector, business confidence among Hong Kong office occupiers has returned to positive territory, though physical expansion remains limited. According to a Colliers survey, only 20% of respondents expect to expand their office space, despite 35% planning to increase headcount. Most companies are prioritizing efficiency and lease economics over new footprints, with 68% of occupiers intending to renew leases in their current buildings. Cost, building quality, and transport accessibility remain the primary drivers for leasing decisions.