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Suzanne Harrison

Financial services provider Tanrich Financial Group has created an index for technology companies, the first known index of its kind in Hong Kong.

 The Tanrich Technology Index, inspired by the cyberport announcement, consists of 30 listed companies involved in telecommunications, computer and related industries and aerospace service providers.

 Some market insiders greeted the development with scepticism, saying there were no true technology stocks in Hong Kong.

 However, Tanrich said at the launch yesterday there was a technology sector in Hong Kong, only it had been ignored. This index is intended to serve as a performance benchmark for the sector.

 Business director Michael Lee cited the cyberport announcement by the Government in March as one catalyst for the creation of the index.

 'The cyberport was one of the triggers and there were visits by Bill Gates, Intel and Yahoo! and this made Hong Kong realise that they need to catch up with the world,' Mr Lee said.

 'The index is to reflect the reality of the situation and to attract investors into the Hong Kong sector. This industry has been ignored for some time and by having this index, it will indirectly help.'  Mr Lee said the index would be the first and only one through which the investment community could monitor the day to day movements of technology stocks.

 Analysts were sceptical, saying the index reflected a group of firms too diverse to be under one umbrella.

 'I don't think there'll be any interest,' one analyst said. 'I think anyone can come up with their own index, but the point is, what is the meaning of the index?   'They say it captures the movement of so-called technology stocks, but we all know they don't move in tandem.'  He said that during the run on red-chip stocks in 1996-97, there were several indices created and that these were a 'novelty' for a short while.

 Another analyst said the index was a good idea, but it would be some time before Hong Kong could support such an index.

 'I don't think there will be a good representation as there are no true tech stocks in Hong Kong,' Celestial Asia Securities research manager George Chan Lung-cheung said.

 The Hong Kong stock exchange has recently seen increased investor interest in companies with technology or telecommunications businesses - even a technological-sounding name - particularly during cyberport developer Pacific Century Group's search for a back-door listing.

 The company said the index was created 'in order to cater for the need for an index which can fully reflect the performance and importance of technology companies'.

 Pacific Century eventually announced it would take over Tricom Holdings, also listed by Tanrich as being one of the 30 firms in the index.

 CCT Telecom Holdings, SmarTone Telecommunications Holdings and Star Telecom International Holding make up three of the 15 telecommunications companies represented by the index.

 The other telecommunications members are ABC Communications (Holdings), Casil Telecommunications Holdings, Champion Technology Holdings, China Sci-Tech Holdings, City Telecom (HK), Group Sense (International), IDT International, Kantone Holdings, Paul Y Properties Group, S Megga International Holdings, Sino Foundations Holdings and VTech Holdings.

 The computer and related company constituents are ASM Pacific Technology, Automated Systems Holdings, China Aerospace International Holdings, Computer and Technologies Holdings, Founder (Hong Kong), Futart International, Hanny Holdings, Legend Holdings, QPL International Holdings, Stone Electronic Technology, Vanda Systems & Communications Holdings and Varitronix International.

 Rounding off the index are APT Satellite Holdings and Asia Satellite Telecommunications Holdings.



First technology index set up to attract investors for sector