The key to the Hang Seng Tech Index - the "Fast Entry Mechanism"

The starting point of the mechanism is to better reflect the changes in the market, but the reality is very harsh despite the idealism.

Currently, the stock market is in an era of crazy pricing in the primary market and foolish investors in the secondary market.

Hot new stocks are often filled with bubbles. Moreover, as Hong Kong stocks gradually become integrated with A-shares and new stocks are marketed as scarce, they attract a large number of retail investors to enter the market, further inflating the bubble and making the Hang Seng Tech Index a huge sacrifice.
Since its launch, the Hang Seng Tech Index has been rapidly included four times, including JD Health, Kuaishou, Baidu, and Bilibili.

The key to the rapid inclusion is that the market cap is large enough. In other words, after a company is included, its proportion in the index will be significant, and larger fluctuations will have a noticeable impact on the index.

Since their inclusion, the individual stocks have all fallen by more than 20%. JD Health has fallen by 56%, and its market cap has dropped from 580 billion to 260 billion.