Hang Seng Index Company: Hang Seng Index has risen more than 53% in the past year, and the DeepSeek model has become a key catalyst

The Zhitong Finance App learned that the Hang Seng Index posted an article stating that after recording an increase of nearly 19% in 2024, the Hang Seng Index recorded an increase of more than 53% in the past year and continued its upward trend in 2025. As of July 18, 2025, this technology-focused index rose another 24% this year. The rise in the Tech Index continued, mainly due to DeepSeek's launch of its cost-effective Large-Scale Language Model (LLM) in January, which heated up market optimism about artificial intelligence in China, thereby driving the performance of technology stocks. Furthermore, the CoE index has recovered from the decline caused by the tense trade situation in April 2025.

As of July 18, 2025, the year-to-date upward trend led the index to increase by more than 53% in the past year, outperforming the market represented by the Hang Seng Composite Index by 12 percentage points. Although the performance of the Science Index is superior to that of the market, its volatility is also higher. As of July 18 this year, the 1-year annualized volatility of the Stock Index was close to 41%, while the Hang Seng Composite Index was 28%.

Since the first ETF to track the index was launched in August 2020, the number of ETPs (ETF+L&I) using the index as a reference has continued to rise, driving the overall total asset management value (AUM) to record simultaneous growth. As of the end of June 2025, the total AUM of the ETP tracking index was US$26.3 billion, up nearly 35% from the end of 2024. AUM has continued to rise in the past few years, with a cumulative increase of 362% from 2021 to 2025. As of June 30, 2025, a total of 29 ETPs based on the Index were listed on 13 different exchanges in the US, Europe and Asia. In terms of the AUM and number of ETPs, the index is currently the most widely tracked index in the Hang Seng Index series.

On the other hand, the stock interconnection mechanism introduced in November 2014 is essential to promote the development of Hong Kong's capital market. As of June 30, 2025, a total of 17 ETFs are eligible for southbound trading, 13 of which track the Hang Seng Index series. It is worth noting that there are 5 indices based on the Index, making the Index the index currently the most south-bound eligible ETF tracking index.

Hang Seng Index pointed out that since the launch of KSE futures in November 2020, trading volume has been rising steadily over the past five years. According to HKEx data, in the first half of 2025, the average daily trading volume (ADV) of Koji futures reached about 172,000 contracts, an increase of 44% over 2024. In the long run, ADV has recorded a cumulative increase of 97 times since trading began in 2020. Its trading volume increased significantly, which also led to a 22% increase in the overall Hong Kong futures market market share, second only to Hang Seng Index futures and China Index futures.