S&P and HKEX design blended equity index for a Southbound ETF route

S&P Dow Jones Indices and HKEX announced their combined S&P 500 & HKEX Tech 100 Index on 12 October, following its launch on 30 September. The commercial aim is to support ETFs seeking Southbound Stock Connect eligibility, combining Hong Kong technology exposure with US large-cap equities in one benchmark.[1]

The methodology sets quarterly rebalancing weights of 62% for HKEX Tech 100 and 38% for the S&P 500. The reset follows the close on the second-to-last business day of March and September and the third Friday of June and December. The announcement’s approximately 60/40 description rounds those targets.[2][1]

HKEX’s published Southbound tests require at least 60% of the benchmark’s weight in Hong Kong-listed shares and at least 60% in Southbound-eligible constituents. The ETF must also satisfy other conditions, including HKD trading, a six-month listing record and average assets of at least HK$550 million over six months. Its benchmark must have been launched for at least a year. Synthetic ETFs and leveraged or inverse products are excluded.[3]

The methodology records a first historical value on 31 December 2020, alongside the 30 September 2026 launch. Its disclosure defines pre-launch values as back-tested. A long chart therefore should not be mistaken for a long live record.[2]

The distribution design and the portfolio design are connected. Allocating most of the benchmark to Hong Kong shares creates room for a minority US allocation while addressing the local-weight tests. It also means a fund tracking the benchmark would carry a substantial Hong Kong technology allocation; adding the S&P 500 does not turn the blend into a globally market-weighted equity portfolio.

There is already a market for this broad approach. HKEX says seven Southbound-eligible 60/40 ETFs had combined assets of HK$6.2 billion at the end of July 2026. Those products covered several international themes. That is context for the new benchmark, not an asset figure attributable to it.[4]

For fund issuers, the benchmark offers a defined portfolio around which to plan a product. Southbound admission then requires the ETF to meet the applicable conditions and pass the exchange’s review. Brokers can use the published eligible-product list to establish which funds customers can access through that route.[3]

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