Fintech firms UP Fintech, Sea, Huobi Technology and Razer were among the companies that were added to MSCI global indexes on May 27, 2021, reflecting their growth achievements.
MSCI indexes are a measurement of stock market performance in a particular area, providing investors with key insights on specific market segments.
Constituents for MSCI indexes are changed on a quarterly and semi-annual basis to reflect the evolution of the underlying equity markets and segments.
UP Fintech, Sea added to MSCI Global Standard Indexes
Following the results of MSCI’s May 2021 Semi-Annual Index Review, online brokerage firm UP Fintech Holding was added to the MSCI China All Shares Index. The index captures large and mid-cap representation and aims to reflect the opportunity set of China share classes listed in Hong Kong, Shanghai, Shenzhen and outside of China.
Founded in 2014, UP Fintech Holding operates Tiger Brokers, a Hong Kong-based online equities trading platform that has been gaining popularity in China. The company, which allows clients to trade equities in the US, the UK, Hong Kong, Singapore and Australia, claims more than one million registered accounts.
Singapore’s Sea is another Internet firm that was added to a global standard index, joining the MSCI Singapore Standard Index. MSCI named Sea as one of the three largest additions to the MSCI World Index by full company market capitalization, alongside Volvo and Palantir Technologies.
Sea is a global consumer Internet company that operates three core businesses across digital entertainment (Garena), e-commerce (Shopee), as well as digital payments and financial services (SeaMoney).
The firm is one of the four recipients of a digital banking license in Singapore which it said it would use to address the unmet financial services needs and young consumers and small and medium-sized enterprises (SMEs) in the city state.
Huobi Tech, Razer included in MSCI Global Small Cap Indexes
In MSCI Global Small Cap Indexes, Huobi Technology Holdings became the first blockchain-related company to be included in the Hong Kong-focused index. The MSCI Hong Kong Small Cap Index measures the performance of the small cap segment of the Hong Kong market, representing about 14% of the free float-adjusted market capitalization of the Hong Kong equity universe.
Formerly known as Pantronics Holdings Limited, Huobi Technology Holdings primarily engages in the manufacturing of electronics but also operates in the virtual asset ecosystem. It’s thriving to become the leading one-stop virtual asset service platform in Asia, and is an affiliate of the Huobi global digital asset trading platform.
Interim results for the past six months ending on March 31, 2021 show that Huobi Technology saw a steady growth in blockchain and virtual asset-related businesses. Revenue from blockchain and virtual asset services represented 38.56% of the group’s total revenue, up from just 6.5% for the same period last year.
Razer, a multinational tech company, is another fintech provider that was added to a global small cap index, joining 53 other constituents of the MSCI Singapore Small Cap Index.
Founded in 2005, Razer designs, develops, and sells consumer electronics, financial services, and gaming hardware. It operates Razer Gold, one of the world’s largest game payment services, and Razer Fintech, its fintech arm which focuses on providing products and services in emerging markets.
Razer Fintech generated US$4.3 billion in TPV in FY2020, representing an increase of 104.4% year-on-year, a surge driven by online shopping and higher digital entertainment consumption during the global pandemic.
After failing to obtain a digital banking license in Singapore, Razer has said that it would instead shift its digital banking focus to Malaysia and the Philippines.
