Ping An Good Doctor Included in Hang Seng Tech Index Launching July 27

On July 20, Hang Seng Indexes Company Limited (“Hang Seng Indexes Company”) announced that it would launch the Hang Seng TECH Index on Monday, July 27, 2020. The new index will track the 30 largest Hong Kong-listed technology companies selected under its screening criteria. Ping An Good Doctor (1833.HK) has been included in the index.

Hang Seng Indexes Company is responsible for compiling and managing the Hang Seng Index series, which primarily covers stocks and bonds listed in Hong Kong and mainland China. The indices compiled by Hang Seng Indexes Company have long served as key barometers for mainstream investors and are typically in high demand among both domestic and international capital. The market has dubbed the Hang Seng TECH Index the “Hong Kong version of the Nasdaq,” believing it may spark a new wave of investment enthusiasm in new economy and technology stocks.

It is understood that the Hang Seng TECH Index primarily covers Hong Kong-listed companies highly relevant to the technology theme, including internet, fintech, cloud computing, e-commerce, and digital business. The index’s selection criteria consider whether eligible companies operate via technology platforms, the proportion of R&D expenditure to revenue, and revenue growth. Following this screening process, the 30 stocks with the largest market capitalizations are included as constituent stocks. Since the beginning of this year, Ping An Good Doctor’s share price has more than doubled, significantly outperforming the broader Hong Kong stock market, with its latest total market capitalization exceeding HK$125 billion.

The Hang Seng TECH Index was launched to reflect the market performance of leading companies listed in Hong Kong that are from the technology or innovation sectors. According to Hang Seng Indexes Company, “the index is another flagship following the Hang Seng Index and the Hang Seng China Enterprises Index.” The index will focus on unicorns listed in Hong Kong and pay attention to large and medium-sized companies that have integrated technology into their businesses, changing people's daily lives.

As the “world’s first listed medical technology company,” Ping An Good Doctor has been widely recognized by domestic and international capital markets since its listing on the Hong Kong Stock Exchange in May 2018. This year, the internet healthcare industry has benefited from favorable market conditions and supportive policies, which have rapidly changed the healthcare-seeking habits of many potential users. As a result, Ping An Good Doctor’s stock price has continued to rise, repeatedly breaking its 52-week high.

Major international banks collectively turn bullish on Ping An Good Doctor. A Citi research report stated that, driven by policy support, online medical consultations will become increasingly important and prevalent, which benefits Ping An Good Doctor given its distinct competitive advantages. The bank maintained a “Buy” rating for Ping An Good Doctor (1833.HK) and raised its target price to HK$150. Bloomberg noted in its research report that Ping An Good Doctor (1833.HK) is an emerging leader in China’s internet healthcare industry, with its leading position stemming from an early-established ecosystem that provides services ranging from online medical consultations to prescription issuance, drug delivery, and health management.

Recently, multiple authoritative domestic data agencies have successively released reports affirming Ping An Good Doctor’s leading position in the industry. In its report, Analysys pointed out that the market size of internet healthcare would reach RMB 200 billion in 2020, representing a year-on-year growth of 46.7%—the highest growth rate since 2015—with Ping An Good Doctor accounting for more than 80% of traffic in the online consultation market. Meanwhile, in its Q1 2020 Report on the Development of China’s Internet Industry, Trustdata stated that Ping An Good Doctor was running strongly ahead in the internet healthcare sector, capturing nearly 70% of new users across the entire industry.