Major Reform in HK Stock Market: Tech Innovation Board Launched
On July 29, 2026, HKEX officially announced the launch of the new "Tech Innovation Board" in October 2026, aiming to attract high-growth tech companies worldwide to list in Hong Kong. This move is seen as another major breakthrough after the 2018 listing reform, enriching investment targets and offering global investors more diversified choices. For Vietnamese investors accelerating overseas asset allocation, this is undoubtedly a signal worth close attention.
For a long time, the Hong Kong stock market has been dominated by traditional sectors like finance and real estate, with a relatively low weight of tech stocks. As the global tech wave evolves, HKEX has continuously improved listing rules. The establishment of a dedicated Tech Innovation Board responds to the pressing market demand for tech investment channels. The new board will lower listing thresholds for unprofitable but high-growth tech companies, biotech firms, and companies with special equity structures, while enhancing information disclosure and investor protection.
Core Features of the Tech Innovation Board
- Differentiated Listing Standards: Allows unprofitable companies to list. Market cap requirements are flexibly adjusted based on industry and R&D spending, with a minimum cap temporarily set at HKD 8 billion.
- Trading Mechanism Optimization: Introduces a widened daily price limit of 30% to boost liquidity, and allows market maker mechanisms to reduce price volatility.
- Investor Access: Individual investors must meet asset requirements (e.g., financial assets of at least HKD 8 million) or qualify as professional investors, but Vietnamese investors can participate via Stock Connect or compliant brokers.
- Tax Incentives: Listed companies on the new board enjoy a 50% reduction in profits tax for the first five years, attracting more innovative firms.
According to HKEX's CEO, over 20 potential issuers have expressed interest, covering frontier fields such as AI, chip design, and new energy. The first batch of listed companies is expected to debut by the end of 2026.
Far-Reaching Impact on the Hong Kong Stock Market
The establishment of the Tech Innovation Board will significantly enhance the competitiveness of Hong Kong stocks in the global market. Historically, after HKEX allowed dual-class share structures and unprofitable biotech firms to list in 2018, it attracted giants like Xiaomi and Meituan, and the Hang Seng Tech Index subsequently performed strongly. The new board will further attract tech unicorns from mainland China and Southeast Asia, creating a clustering effect. For Vietnamese investors, Hong Kong tech stocks offer more reasonable valuations compared to A-shares and US stocks, along with ample liquidity, making them an ideal choice for diversifying single-market risk.
Meanwhile, the correlation between Hong Kong and Vietnamese stock markets is strengthening. In recent years, the correlation between the VN Index and the Hang Seng Index has risen to about 0.6, and some Vietnamese state-owned enterprises are considering secondary listings in Hong Kong. The launch of the Tech Innovation Board will accelerate this trend, providing a reference for the opening of Vietnam's capital market.
How Can Vietnamese Investors Seize Opportunities?
Currently, Vietnamese investors have two main channels to participate in Hong Kong stocks:
- Stock Connect: Open a Stock Connect account through local Vietnamese brokers (e.g., HSC, SSI) to directly invest in eligible stocks. The Tech Innovation Board is expected to be included in the Stock Connect list after launch, allowing Vietnamese investors to trade directly.
- Hong Kong Local Brokers: Open an account directly with a Hong Kong broker to participate in primary market subscriptions and secondary market trading. It is recommended to choose licensed institutions regulated by the Hong Kong Securities and Futures Commission to ensure fund safety.
When selecting targets, it is advised to focus on companies with core technology moats and clear commercialization paths, avoiding blind pursuit of concepts. Also note that the new board may experience high volatility initially, so adopting phased buying or dollar-cost averaging strategies can reduce risk.
Conclusion
The birth of the Hong Kong Tech Innovation Board is not only a self-innovation of the Hong Kong financial market but also opens a new window for global tech investors. For Vietnamese investors, gaining in-depth understanding and timely positioning in the Hong Kong tech stock sector may become a key step for wealth growth in the next decade.
