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{{short description|Stock market index in Hong Kong}}
== Background Information on Hang Seng Index ==
{{redirect|Hang Seng|the bank with the same name|Hang Seng Bank|other uses}}
{{Infobox financial index
|name = Hang Seng Index
|logo =
|image =[[File:Hang Seng Index.png|300px]]
|caption =Historical logarithmic graph of the Hang Seng Index from 1969 to 2012.
|foundation = {{start date and age|1964|07|31}}<ref name="hsi_50yr">{{cite news |title=HANG SENG INDEXES CELEBRATES 50TH ANNIVERSARY OF HANG SENG INDEX BASE DATE |url=https://www.hsi.com.hk/static/uploads/contents/en/news/pressRelease/20140916T000000.pdf |access-date=4 February 2024 |publisher=Hang Seng Indexes Company Limited |date=16 September 2014}}</ref>
|operator = [[Hang Seng Indexes Company]]
|exchanges = [[Hong Kong Stock Exchange]]
|symbol = HSI
|constituents = 82
|cap_level =
|mcap =
|weighting = [[Capitalization-weighted index|Capitalization-weighted]]
|related =
|homepage = {{URL|https://www.hsi.com.hk/eng|hsi.com.hk}}
}}
[[File:Hang Seng Index.webp|thumb|305px|Hang Seng Index 2001–2022]]
{{Infobox Chinese
| s = 恒生指数
| t = 恒生指數
| l = ever-growing index
| p = Héng Shēng zhǐshù
| w = Heng Sheng chihshu
| mi = {{IPAc-cmn|h|eng|2|-|sh|eng|1|zhi|3|sh|u|4}}
| j = Hang4 sang1 zi2 sou3
| y = Hàhng sāng jí sóu
| ci = {{IPA-yue|hɐ̏ŋ sɐ́ːŋ tɕǐːsǒu|}}
| myr = Héng Shēng jřshù
}}




'''Hang Seng Index''' ('''HSI''', &#24658;&#29983;&#25351;&#25976;) is a capitalization-weighted [[stock market index]] in the [[Hong Kong Stock Exchange]]. It is used to record and monitor daily changes of the 33 largest companies of the [[Hong Kong]] stock market and as the main indicator of the overall market performance in Hong Kong. These companies represent about 70% of capitalization of the Hong Kong Stock Exchange.
The '''Hang Seng Index''' ('''HSI''') is a market-[[Capitalization-weighted index|capitalization-weighted]] [[stock market index]] in [[Hong Kong]], adjusted for free float. It tracks and records daily changes in the largest companies listed on the [[Hong Kong Stock Exchange]] and serves as the primary indicator of overall market performance in Hong Kong. These 82 constituent companies represent about 58% of the capitalisation of the Hong Kong Stock Exchange.<ref>{{Cite web |url=http://www.hsi.com.hk/HSI-Net/static/revamp/contents/en/dl_centre/factsheets/FS_HSIe.pdf |title=AHSI and its Total Return Index |date=August 2015 |access-date=2015-09-21 |archive-url=https://web.archive.org/web/20150924031624/http://www.hsi.com.hk/HSI-Net/static/revamp/contents/en/dl_centre/factsheets/FS_HSIe.pdf |archive-date=2015-09-24 |url-status=dead }}</ref>


HSI was publicized on November 24, 1969, and is currently compiled and maintained by [[Hang Seng Indexes Company Limited]], which is a wholly owned subsidiary of [[Hang Seng Bank]], one of the largest banks registered and listed in Hong Kong in terms of market capitalisation.<ref name="scmp2014">{{cite news |title=A new chapter for the Hang Seng Index |url=https://www.scmp.com/comment/insight-opinion/article/1567928/new-chapter-hang-seng-index |access-date=4 February 2024 |publisher=SCMP |date=7 August 2014 |archive-url=https://web.archive.org/web/20140808204528/https://www.scmp.com/comment/insight-opinion/article/1567928/new-chapter-hang-seng-index |archive-date=8 August 2014 |url-status=live }}</ref> It is responsible for compiling, publishing and managing the Hang Seng Index and a range of other stock indexes, such as ''[[Hang Seng China Enterprises Index]]'', ''[[Hang Seng China AH Index Series]]'', ''[[Hang Seng China H-Financials Index]]'', ''[[Hang Seng Composite Index Series]]'', ''[[Hang Seng China A Industry Top Index]]'', ''Hang Seng Corporate Sustainability Index Series'' and ''Hang Seng Total Return Index Series''. Hang Seng in turn, despite being a public company, is controlled by another listed international financial institution [[HSBC|HSBC Holdings plc]]. Both HSBC Holdings and Hang Seng are constituents of the index.
HSI was started on 24 November 1969, compiled and maintained by ''HSI Services Limited'', which is a wholly-owned subsidiary of [[Hang Seng Bank]], the second largest bank listed in Hong Kong in terms of market capitalisation.


==History==
[[Image:HSI2.jpg]]


[[Ho Sin Hang]], chairman of the Hang Seng Bank, conceived the idea of creating the Hang Seng Index as a "[[Dow Jones Industrial Average|Dow Jones Index]] for Hong Kong".<ref name="Dragon Crown">{{cite book |last1=Kwan |first1=Stanley S. K. |author-link=Stanley Kwan (banker) |title=The Dragon and the Crown |year=2009 |publisher=Hong Kong University Press| isbn=9789622099555 |pages=[https://archive.org/details/dragoncrownhongk00kwan/page/101 101]–131 |url=https://archive.org/details/dragoncrownhongk00kwan}}</ref><ref name=nytimes>{{cite news |title=Stanley Kwan, Hang Seng Index Creator, Dies at 86 |url=https://www.nytimes.com/2012/01/11/business/global/stanley-kwan-hang-seng-index-creator-dies-at-86.html |work=[[The New York Times]] |date=2012-01-10}}</ref> Along with Hang Seng Director [[Lee Quo-wei]], he commissioned Hang Seng's head of Research [[Stanley Kwan (banker)|Stanley Kwan]] to create the index in 1964,<ref name="Dragon Crown" /> the index was initially used for internal reference in the Hang Seng Bank, they debuted the index on November 24, 1969.<ref name=nytimes/>
It is responsible for compiling, publishing and managing the Hang Seng Index and a range of other stock indexes, such as ''Hang Seng Composite Index'', ''Hang Seng HK MidCap Index'', etc.


==Statistics==
On 2 January 1985, four subindices were established in order to make the index clearer and to classify these 33 constituent stocks into 4 distinct sectors. They are namely
{{More citations needed section|date=August 2015}}
When the Hang Seng Index was first published, its base of 100 points was set equivalent to the stocks' total value as of the market close on July 31, 1964. Its all-time low is 58.61 points, reached retroactively on August 31, 1967, after the base value was established but before the publication of the index. The Hang Seng passed the 10,000 point milestone for the first time in its history on December 10, 1993, and, 13 years later, passed the 20,000 point milestone on December 28, 2006. In less than 10 months, it passed the 30,000 point milestone on October 18, 2007. Its all-time high, set on January 26, 2018, was 33,223.58 points<ref>{{cite web|url=http://www.hkex.com.hk/?sc_lang=en|title=HKEX|website=www.hkex.com.hk}}</ref> at closing. From October 30, 2007, through March 9, 2008, the index lost 9,426 points or approximately 30%. On September 5, it fell past the 20,000 mark the first time in almost a year to a low of 19,708.39, later closing at 19,933.28. On October 8, 2008, the index closed at 15,431.73, over 50% less than the all-time high and the lowest closing value in over two years. On October 27, 2008, the index further fell to 10,676.29 points, having fallen nearly two-thirds from its all-time peak, but passed the 20,000 point milestone again to 20,063.93 on 24 July 2009. The index reached 25,000.00 on August 19, 2014, reaching as high as 25,201.21 that day, later closing at 24,909.26 points. It continued rising to hit 26,000 on April 8, 2015, with a close of 26,236.86 The following day, it rose to as much as 27,922.67 before closing at 26,944.39. Yet again, another milestone was reached on April 13, 2015, rising to over 28,000 points, or closing to 28,016.34, the highest since December 2007. On July 8, 2015, the index fell as much as 2139 points. On 21 August the index entered a [[bear market]].
The index at that point hovered around 18000-19000 points,<ref>{{cite web | url=https://www.bloomberg.com/news/articles/2015-08-21/hong-kong-stocks-tumble-into-bear-market-amid-global-selloff | title=Hong Kong Stocks Enter Bear Market After Falling From April Peak | publisher=Bloomberg L.P. | date=August 21, 2015 | access-date=August 23, 2015 | author=Nishizawa, Kana | author2=Haigh, Adam}}</ref> until it ended in February 2016. On 24 June 2016, the market fell 1,000 points in response to [[2016 United Kingdom European Union membership referendum|UK EU referendum]] results that "Leave" won the vote against "Remain". Then, the markets continuously fell on 27 and 28 June 2016 before recovered slightly on 29 June 2016.


=== Contract Specification ===
'''Hang Seng Finance Index'''
The Hang Seng Index is traded as a future on the Hong Kong Futures Exchange (HKFE). The full contract specifications are below:
*00005 HSBC Holdings plc
{| class="wikitable"
*00011 Hang Seng Bank Ltd
|+Contract Specification<ref>{{Cite web |title=Historical Hang Seng Index Intraday Data (HSI) |url=https://portaracqg.com/futures/int/hsi |access-date=2022-09-14 |website=PortaraCQG |language=en-US}}</ref>
*00023 Bank of East Asia, Ltd
!Hang Seng Index (HSI )
*02388 BOC Hong Kong (Holdings) Ltd
!
'''Hang Seng Utilities Index'''
|-
*00002 CLP Holdings Ltd
|Contract Size:
*00003 Hong Kong and China Gas Co. Ltd
|HK$50 Hang Seng Index Points
*00006 Hong Kong Electric Holdings Ltd
|-
'''Hang Seng Property Index'''
|Exchange:
*00001 Cheung Kong (Holdings) Ltd
|HKFE
*00012 Henderson Land Development Co. Ltd
|-
*00016 Sun Hung Kai Properties Ltd
|Sector:
*00020 Wheelock and Co. Ltd
|Index
*00097 Henderson Investment Ltd
|-
*00101 Hang Lung Properties Ltd
|Tick Size:
'''Hang Seng Commercial & Industrial Index'''
|1
*00004 Wharf (Holdings) Ltd
|-
*00008 Pacific Century CyberWorks Ltd
|Tick Value:
*00013 Hutchison Whampoa Ltd
|50 HKD
*00019 Swire Pacific Ltd 'A'
|-
*00066 MTR Corporations Ltd
|Big Point Value (BPV):
*00179 Johnson Electric Holdings Ltd
|50
*00267 CITIC Pacific Ltd
|-
*00291 China Resources Enterprise, Ltd
|Denomination:
*00293 Cathay Pacific Airways Ltd
|HKD
*00330 Esprit Holdings Ltd
|-
*00363 Shanghai Industrial Holdings Ltd
|Decimal Place:
*00494 Li & Fung Ltd
|0
*00511 Television Broadcasts Ltd
|}
*00551 Yue Yuen Industrial (Holdings) Ltd
*00762 China Unicom Ltd
*00883 CNOOC Ltd
*00941 China Mobile (Hong Kong) Ltd
*00992 Legend Holdings Ltd
*01038 Cheung Kong Infrastructure Holdings Ltd
*01199 COSCO Pacific Ltd


=== Annual Returns ===
The '''Hang Seng Composite Index Series'''(&#24658;&#29983;&#32156;&#21512;&#25351;&#25976;) was launched on 3 October 2001, targeting on providing a broad standard of the performance of the Hong Kong stock market. Comprising the top 200 listed companies in terms of market capitalisation, it is composed of the geographical series and the industry series.
The following table shows the annual development of the Hang Seng Index, which was calculated from 1964.<ref>{{Cite web|url=http://www.chinavalue.net/Finance/Blog/2007-12-24/35487.aspx|title=10年20倍并不是奇迹——香港、美国股指成长的启示(杨老金） - 邹照洪 - 职业日志 - 价值中国网|website=www.chinavalue.net|access-date=2020-01-19|archive-date=2016-11-08|archive-url=https://web.archive.org/web/20161108133349/http://www.chinavalue.net/Finance/Blog/2007-12-24/35487.aspx|url-status=dead}}</ref><ref>{{Cite web|url=https://finance.yahoo.com/quote/%5EHSI/history/|title=HANG SENG INDEX (^HSI) Historical Data - Yahoo Finance|website=finance.yahoo.com|language=en-US|access-date=2020-01-21}}</ref>
{| class="wikitable sortable" style="text-align:right;"
! Year
! Closing level
! Change in Index<br />in Points
! Change in Index<br />in %
|-
| 1965 || 82.14 || ||
|-
| 1966 || 79.69 || −2.45 || −2.98
|-
| 1967 || 66.92 || −12.77 || −16.02
|-
| 1968 || 107.55 || 40.63 || 60.71
|-
| 1969 || 155.47 || 47.92 || 44.56
|-
| 1970 || 211.64 || 56.17 || 36.13
|-
| 1971 || 341.36 || 129.72 || 61.29
|-
| 1972 || 843.40 || 502.04 || 147.07
|-
| 1973 || 433.68 || −409.72 || −48.58
|-
| 1974 || 171.11 || −262.57 || −60.54
|-
| 1975 || 350.00 || 178.89 || 104.55
|-
| 1976 || 447.67 || 97.67 || 27.91
|-
| 1977 || 404.02 || −43.65 || −9.75
|-
| 1978 || 495.51 || 91.49 || 22.64
|-
| 1979 || 879.38 || 383.87 || 77.47
|-
| 1980 || 1,473.59 || 594.21 || 67.57
|-
| 1981 || 1,405.82 || −67.77 || −4.60
|-
| 1982 || 783.82 || −622.00 || −44.24
|-
| 1983 || 874.94 || 91.12 || 11.63
|-
| 1984 || 1,200.38 || 567.35 || 89.62
|-
| 1985 || 1,752.45 || 552.07 || 45.99
|-
| 1986 || 2,568.30 || 815.85 || 46.55
|-
| 1987 || 2,302.75 || −265.55 || −10.34
|-
| 1988 || 2,687.44 || 384.69 || 16.70
|-
| 1989 || 2,836.57 || 149.13 || 5.55
|-
| 1990 || 3,024.55 || 187.98 || 6.63
|-
| 1991 || 4,297.33 || 1,272.78 || 42.08
|-
| 1992 || 5,512.39 || 1,215.06 || 28.28
|-
| 1993 || 11,888.39 || 6,376.00 || 115.67
|-
| 1994 || 8,191.04 || −3,697.40 || −31.10
|-
| 1995 || 10,073.39 || 1,882.35 || 22.98
|-
| 1996 || 13,451.45 || 3,378.06 || 33.53
|-
| 1997 || 10,722.76 || −2,728.69 || −20.29
|-
| 1998 || 10,048.58 || −674.18 || −6.29
|-
| 1999 || 16,962.10 || 6,913.52 || 68.80
|-
| 2000 || 15,095.53 || −1,866.57 ||style="color:red"| −11.00
|-
| 2001 || 11,397.21 || −3,698.32 ||style="color:red"| −24.50
|-
| 2002 || 9,321.29 || −2,075.92 ||style="color:red"| −18.21
|-
| 2003 || 12,575.94 || 3,254.65 || 34.92
|-
| 2004 || 14,230.14 || 1,654.20 || 13.15
|-
| 2005 || 14,876.43 || 646.29 || 4.54
|-
| 2006 || 19,964.72 || 5,088.29 || 34.20
|-
| 2007 || 27,812.65 || 7,847.93 || 39.31
|-
| 2008 || 14,387.48 || −13,425.17 ||style="color:red"| −48.27
|-
| 2009 || 21,872.50 || 7,485.02 || 52.02
|-
| 2010 || 23,035.45 || 1,162.95 || 5.32
|-
| 2011 || 18,434.39 || −4,601.06 ||style="color:red"| −19.97
|-
| 2012 || 22,656.92 || 4,222.53 || 22.91
|-
| 2013 || 23,306.39 || 649.47 || 2.87
|-
| 2014 || 23,605.04 || 298.65 || 1.28
|-
| 2015 || 21,914.40 || −1,690.64 ||style="color:red"| −7.16
|-
| 2016 || 22,000.56 || 86.16 ||0.39
|-
| 2017 || 29,919.15 || 7,918.59 ||35.99
|-
|2018
|25,845.70
|−4,073.45||style="color:red"|−13.61
|-
|2019
|28,189.75
|2,344.05
|9.07
|-
|2020
|27,231.13
|−958.62||style="color:red"|−3.40
|-
|2021
|23,397.67
|−3833.46||style="color:red"|−14.08
|-
|2022
|19,781.41
|−3,616.26||style="color:red"|−15.46
|-
|2023
|17,047.39
|−2,734.02||style="color:red"|−13.82
|-
|}


==Components==
To ensure fairness in its activities, the HSI Services established the Independent Advisory Committee to give advice on issues regarding the management of HSI.
On January 2, 1985, four sub-indices were established in order to make the index clearer and to classify constituent stocks into four distinct sectors. There are 82 HSI constituent stocks in total. As of February 2024 they are:<ref>[https://www.hsi.com.hk/eng/indexes/all-indexes/hsi Hang Seng Index 2018-09-23]</ref>
{| class="wikitable sortable" border="1" id="constituents"
!Ticker
!Name
!Sub-index
|-
|{{SEHK|5}}
|[[HSBC Holdings plc]]
|Finance
|-
|{{SEHK|11}}
|[[Hang Seng Bank Ltd]]
|Finance
|-
|{{SEHK|388}}
|[[Hong Kong Exchanges and Clearing|HKEx Limited]]
|Finance
|-
|{{SEHK|939}}
|[[China Construction Bank]]
|Finance
|-
|{{SEHK|1299}}
|[[AIA Group Limited]]
|Finance
|-
|{{SEHK|1398}}
|[[Industrial and Commercial Bank of China]]
|Finance
|-
|{{SEHK|2318}}
|[[Ping An Insurance]]
|Finance
|-
|{{SEHK|2388}}
|[[Bank of China (Hong Kong)|BOC Hong Kong (Holdings) Ltd]]
|Finance
|-
|{{SEHK|2628}}
|[[China Life Insurance Company|China Life]]
|Finance
|-
|{{SEHK|3968}}
|[[China Merchants Bank]]
|Finance
|-
|{{SEHK|3988}}
|[[Bank of China|Bank of China Ltd]]
|Finance
|-
|{{SEHK|2}}
|[[CLP Holdings|CLP Holdings Limited]]
|Utilities
|-
|{{SEHK|3}}
|[[Hong Kong and China Gas Company Limited]]
|Utilities
|-
|{{SEHK|6}}
|[[Power Assets Holdings Limited]]
|Utilities
|-
|{{SEHK|836}}
|[[China Resources Power]]
|Utilities
|-
|{{SEHK|1038}}
|[[Cheung Kong Infrastructure Holdings|Cheung Kong Infrastructure Holdings Limited]]
|Utilities
|-
|{{SEHK|2688}}
|[[ENN Energy]]
|Utilities
|-
|{{SEHK|12}}
|[[Henderson Land Development|Henderson Land Development Company Limited]]
|Properties
|-
|{{SEHK|16}}
|[[Sun Hung Kai Properties|Sun Hung Kai Properties Limited]]
|Properties
|-
|{{SEHK|17}}
|[[New World Development|New World Development Company Limited]]
|Properties
|-
|{{SEHK|101}}
|[[Hang Lung Properties|Hang Lung Properties Limited]]
|Properties
|-
|{{SEHK|688}}
|[[China Overseas Land & Investment Limited]]
|Properties
|-
|{{SEHK|823}}
|[[Link REIT]]
|Properties
|-
|{{SEHK|960}}
|[[Longfor Properties]]
|Properties
|-
|{{SEHK|1109}}
|[[China Resources Land Limited]]
|Properties
|-
|{{SEHK|1113}}
|[[CK Asset Holdings]]
|Properties
|-
|{{SEHK|1209}}
|China Resources Mixc Lifestyle
|Properties
|-
|{{SEHK|1997}}
|[[Wharf Real Estate Investment Company Limited]]
|Properties
|-
|{{SEHK|6098}}
|[[Country Garden]]
|Properties
|-
|{{SEHK|1}}
|[[CK Hutchison Holdings|CK Hutchison Holdings Limited]]
|Commerce & Industry
|-
|{{SEHK|27}}
|[[Galaxy Entertainment Group|Galaxy Entertainment Group Ltd.]]
|Commerce & Industry
|-
|{{SEHK|66}}
|[[MTR Corporation|MTR Corporation Ltd]]
|Commerce & Industry
|-
|{{SEHK|175}}
|[[Geely Auto]]
|Commerce & Industry
|-
|{{SEHK|241}}
|[[Alibaba Health]]
|Commerce & Industry
|-
|{{SEHK|267}}
|[[CITIC Limited]]
|Commerce & Industry
|-
|{{SEHK|288}}
|[[WH Group]]
|Commerce & Industry
|-
|{{SEHK|291}}
|[[China Resources Beer]]
|Commerce & Industry
|-
|{{SEHK|316}}
|[[Orient Overseas (International) Limited]]
|Commerce & Industry
|-
|{{SEHK|322}}
|[[Tingyi]]
|Commerce & Industry
|-
|{{SEHK|386}}
|[[Sinopec|Sinopec Corp]]
|Commerce & Industry
|-
|{{SEHK|669}}
|[[Techtronic Industries]]
|Commerce & Industry
|-
|{{SEHK|700}}
|[[Tencent Holdings Limited]]
|Commerce & Industry
|-
|{{SEHK|762}}
|[[China Unicom]]
|Commerce & Industry
|-
|{{SEHK|857}}
|[[PetroChina|PetroChina Company Limited]]
|Commerce & Industry
|-
|{{SEHK|868}}
|[[Xinyi Glass]]
|Commerce & Industry
|-
|{{SEHK|881}}
|[[Zhongsheng Group]]
|Commerce & Industry
|-
|{{SEHK|883}}
|[[CNOOC Limited]]
|Commerce & Industry
|-
|{{SEHK|941}}
|[[China Mobile|China Mobile Ltd]]
|Commerce & Industry
|-
|{{SEHK|968}}
|[[Xinyi Solar]]
|Commerce & Industry
|-
|{{SEHK|981}}
|[[Semiconductor Manufacturing International Corporation]]
|Commerce & Industry
|-
|{{SEHK|992}}
|[[Lenovo]]
|Commerce & Industry
|-
|{{SEHK|1044}}
|[[Hengan International|Hengan International Group Co. Ltd]]
|Commerce & Industry
|-
|{{SEHK|1088}}
|[[China Shenhua Energy]]
|Commerce & Industry
|-
|{{SEHK|1093}}
|[[CSPC Pharmaceutical Group]]
|Commerce & Industry
|-
|{{SEHK|1099}}
|[[Sinopharm Group]]
|Commerce & Industry
|-
|{{SEHK|1177}}
|[[Sino Biopharm]]
|Commerce & Industry
|-
|{{SEHK|1211}}
|[[BYD Company]]
|Commerce & Industry
|-
|{{SEHK|1378}}
|[[China Hongqiao Group]]
|Commerce & Industry
|-
|{{SEHK|1810}}
|[[Xiaomi]]
|Commerce & Industry
|-
|{{SEHK|1876}}
|Budweiser Brewing Company APAC
|Commerce & Industry
|-
|{{SEHK|1928}}
|[[Sands China]]
|Commerce & Industry
|-
|{{SEHK|1929}}
|[[Chow Tai Fook]]
|Commerce & Industry
|-
|{{SEHK|2015}}
|[[Li Auto]]
|Commerce & Industry
|-
|{{SEHK|2020}}
|[[Anta Sports]]
|Commerce & Industry
|-
|{{SEHK|2269}}
|[[WuXi Biologics]]
|Commerce & Industry
|-
|{{SEHK|2313}}
|[[Shenzhou International]]
|Commerce & Industry
|-
|{{SEHK|2319}}
|[[Mengniu Dairy]]
|Commerce & Industry
|-
|{{SEHK|2331}}
|[[Li-Ning]]
|Commerce & Industry
|-
|{{SEHK|2359}}
|[[WuXi AppTec]]
|Commerce & Industry
|-
|{{SEHK|2382}}
|[[Sunny Optical]]
|Commerce & Industry
|-
|{{SEHK|2899}}
|[[Zijin Mining]]
|Commerce & Industry
|-
|{{SEHK|3690}}
|[[Meituan]]
|Commerce & Industry
|-
|{{SEHK|3692}}
|[[Hansoh Pharmaceutical Group]]
|Commerce & Industry
|-
|{{SEHK|6618}}
|[[JD Health]]
|Commerce & Industry
|-
|{{SEHK|6690}}
|[[Haier]]
|Commerce & Industry
|-
|{{SEHK|6862}}
|[[Haidilao]]
|Commerce & Industry
|-
|{{SEHK|9618}}
|[[JD.com]]
|Commerce & Industry
|-
|{{SEHK|9633}}
|[[Nongfu Spring]]
|Commerce & Industry
|-
|{{SEHK|9888}}
|[[Baidu]]
|Commerce & Industry
|-
|{{SEHK|9961}}
|[[Trip.com Group]]
|Commerce & Industry
|-
|{{SEHK|9988}}
|[[Alibaba Group]]
|Commerce & Industry
|-
|{{SEHK|9999}}
|[[NetEase]]
|Commerce & Industry
|}The '''[[Hang Seng Composite Index Series]]''' (恒生綜合指數) was launched on October 3, 2001, targeting on providing a broad standard of the performance of the Hong Kong stock market. It was last revamped on March 8, 2010, and comprises 307 constituents (will become 306 from August 9, 2010{{Citation needed|date=September 2010}}). The market capitalisation of these companies accounts for about 95% of the total capitalisation of the stocks in Hong Kong.


To ensure the impartiality of its operation, Hang Seng Indexes Company Limited established an Independent Advisory Committee to give advice on issues pertaining to the indexes, including constituent changes and the development of new indexes.
----


== The Hang Seng Stock Classification System ==
==Hang Seng Industry Classification System==
'''Hang Seng Industry Classification System''' (formerly called Hang Seng Stock Classification System) is a comprehensive system designed for the Hong Kong stock market by Hang Seng Indexes Company Limited. It reflects the stock performance in different sectors. It caters for the unique characteristics of the Hong Kong stock market and maintains the international compatibility with a mapping to international [[industry classification]]


'''General classification guidelines:'''


i) The '''sales revenue''' arising from each business area of a company is the primary parameter of stock classification. Profit or assets will also be taken into consideration where these better reflects the company's business.
The '''Hang Seng Stock Classification System''' is a comprehensive system designed for the Hong Kong stock market by HSI Services Limited. It reflects the stock performance in different sectors. It caters for the '''unique characteristics''' of the Hong Kong stock market and maintains the '''international compatibility''' with a mapping to the [[FTSE]] Global Classification System, which is compiled and administered by FTSE International Limited.


ii) A company will be classified into different '''sectors''' according to its majority source of sales revenue(or profit or assets if relevant).
General Classification Guidelines:


iii) '''Re-classification''' of a stock's Industry Sector will occur once the company's business has undergone a major change, such as, substantial [[merger]] or [[Takeover|acquisition]].
i)The '''sales revenue''' arising from each business area of a company is the primary parameter of stock classification, and the [[net profit]] will also be taken into consideration to determine whether that company's business runs well.


'''Industry sectors:'''
ii)A company will be classified into different '''sectors''' according to its majority source of sales revenue.
* Energy (能源業)
* Material (源材料業)
* Industrial Goods (工業製品業)
* Consumer Goods (消費品製造業)
* Services (服務業)
* Telecommunications (電訊業)
* Utilities (公共事業)
* Financials (金融業)
* Properties & Construction (地產建築業)
* Information Technology (資訊科技業)
* Conglomerates (綜合企業)


'''Source of information'''
iii)'''Re-classification''' of a stock's Industry Sector will occur once the company's business has undergone a major change, such as, substantial [[merger]] or [[acquisition]].

'''Industry Sectors:'''
* Oil & Resources (&#36039;&#28304;&#31014;&#29986;&#26989;)
* Industrial Goods (&#24037;&#26989;&#35069;&#21697;&#26989;)
* Consumer Goods (&#28040;&#36027;&#21697;&#35069;&#36896;&#26989;)
* Services (&#26381;&#21209;&#26989;)
* Utilities (&#20844;&#20849;&#20107;&#26989;)
* Financials (&#37329;&#34701;&#26989;)
* Properties & Construction (&#22320;&#29986;&#24314;&#31689;&#26989;)
* Information Technology (&#36039;&#35338;&#31185;&#25216;&#26989;)
* Conglomerates (&#32156;&#21512;&#20225;&#26989;)

----

== Selection Criteria for the HSI Constituent Stocks ==


The classification of each stock is based on the information available to the public, for example the annual reports and company announcements.


==Selection criteria for the HSI constituent stocks==
HSI constituent stocks are selected with the use of extensive analysis, together with external consultation. To be qualified for selection, a company:
HSI constituent stocks are selected with the use of extensive analysis, together with external consultation. To be qualified for selection, a company:


* must be among those that comprise top 90% of the total market value of all ordinary shares;
* must be among those that comprise top 90% of the total market value of all ordinary shares;
* must be among those that comprise top 90% of the total turnover on the Stock Exchange of Hong Kong Limited "SEHK" (&#39321;&#28207;&#20132;&#26131;&#25152;);
* must be among those that comprise top 90% of the total turnover on the Stock Exchange of Hong Kong Limited "SEHK" (香港交易所);
* should have a listing history of 24 months; and
* should have a listing history of 24 months or meet the requirements of the following Guidelines:
* should not be a foreign company as defined by the SEHK.


'''Guidelines for Handling Large-cap Stocks Listed for Less than 24 Months'''
From the many eligible candidates, final selections are based on the followings:
* The market capitalisation and turnover rankings of the companies;
* The representation of the sub-sectors within HSI directly reflecting that of the market; and
* The financial performance of the companies.


''For a newly listed large-cap stock, the minimum listing time required for inclusion in the stock universe for the HSI review is as follows:''
----
{| class="wikitable"

|-
== Calculation Formula for HSI ==
! Average MV Rank at Time of Review
! Minimum Listing History
|-
| Top 5
| 3 Months
|-
| 6–15
| 6 Months
|-
| 16–20
| 12 Months
|-
| 21–25
| 18 Months
|-
| Below 25
| 24 Months
|}


Among the eligible candidates, final selections are based on their:
* market capitalisation and turnover rankings;
* representation of the respective sub-sectors within HSI; and
* financial performance.


==Calculation formula for HSI==
The current Hang Seng Index is calculated from this formula:
The current Hang Seng Index is calculated from this formula:


<math> \textrm{Current~Index}= \frac{\sum\textrm{[}\textrm{P(t)}\times\textrm{IS}\times\textrm{FAF}\times\textrm{CF}\textrm{]}}{\sum\textrm{[}\textrm{P(t-1)}\times\textrm{IS}\times\textrm{FAF}\times\textrm{CF}\textrm{]}} \times \textrm{Yesterday's~Closing~Index}.</math>
<math> Current Index= \frac{Today's Aggregate Market Capitalisation}{Yesterday's Aggregate Market Capitalisation} \times Closing Index</math>


Descriptions on parameters:
Descriptions on parameters:
* ''CurrentIndex'': Today's Current Index
*P(t): Current Price at Day t
*P(t-1): Closing Price at Day (t-1)
* ''ClosingIndex'': Yesterday's Closing Index
*IS: Issued Shares (Only H-share portion is taken into calculation in case of H-share constituents.)
* ''Today'sAggregateMarketCapitalisation'': Today's Current Aggregate Market Capitalisation of Constituent Stocks
*FAF: Freefloat-adjusted Factor, which is between 0 and 1, adjusted quarterly
* ''Yesterday'sAggregateMarketCapitalisation'': Yesterday's Closing Aggregate Market Capitalisation of Constituent Stocks
*CF: Cap Factor, which is between 0 and 1, adjusted quarterly

----

== Daily Reports for HSI ==



==Daily reports for HSI==
People keep watching the following reports for investment activities:
Investors in Asian markets monitor the following reports for investment activities:


*Hang Seng Indexes Daily Bulletin
*Hang Seng Indexes Daily Bulletin
*Hang Seng Index (HSI) Constituent Stocks Performance
*Hang Seng Index (HSI) Constituent Stocks Performance
*Index Performance Summary
*Hang Seng Composite Index Series Constituent Stocks Performance
*Total Return Index Series Daily Bulletin
*Index Performance Summary


==Representativeness of the HSI==
----
The representativeness of the HSI can be studied by the turnover of the whole stock market and by how much its market capitalisation covers. The aggregate market value of the HSI constituent stocks is maintained at approximately 60% of the total market value. This coverage ratio compares favorably with major overseas stock indices.


== Other related Hang Seng stock index ==
==Other related Hang Seng stock indexes==
*[[Hang Seng China Enterprises Index]] (恒生中國企業指數)
*[[Hang Seng China-Affiliated Corporations Index]] (恒生香港中資企業指數)
*[[Hang Seng China H-Financials Index]] (恒生中國H股金融行業指數)
*[[Hang Seng Mainland 100]] (恒生中國內地100)
*[[Hang Seng Mainland 25]] (恒生中國內地25)
*Hang Seng HK 35 (恒生香港35)
*Hang Seng REIT Index (恒生房地產基金指數)
*Hang Seng Corporate Sustainability Index Series (恒生可持續發展企業指數系列)
*[[Hang Seng Composite Index]] (恒生綜合指數系列)
*[[Hang Seng Composite Industry Indexes]] (恒生綜合行業指數)
*Hang Seng Composite Size Indexes (恒生綜合市值指數)
*Hang Seng Short & Leveraged Index Series (恒生短倉及槓桿指數系列)
*Hang Seng China A Industry Top Index (恒生A股行業龍頭指數)
*[[Hang Seng China 50 Index]] (恒生神州50指數)
*Hang Seng China AH Premium Index(恒生AH股溢價指數)
*Hang Seng China AH Index Series (恒生AH指數系列)
*Hang Seng Total Return Index Series (恒生股息累計指數系列)
*Hang Seng Dividend Point Index Series (股息點指數系列)
*[[Hang Seng Global Composite Index]]
*Hang Seng Tech Index (恆生科技指數)


==See also==
*[[Hang Seng Composite Index Series]]
{{Portal|Hong Kong|Economy}}
*[[Dow Jones Industrial Average]]
*[[Nikkei 225]]
*[[SSE Composite Index]]
*[[SZSE Component Index]]
*[[FTSE China A50 Index]]


==References==
*[[Hang Seng Composite Industry Indices]]
{{reflist}}


==External links==
*[[Hang Seng Freefloat Index]]
*[https://www.bloomberg.com/apps/quote?ticker=HSI:IND Bloomberg page for HSI:IND]
**HSI Services Limited have introduced a Hang Seng Freefloat Prime Series comprising three new indexes on 20 January 2003.
* {{Official website|http://www.hsi.com.hk/}} {{in lang|en|zh}}
*[https://www.hl.co.uk/shares/stock-market-summary/hang-seng Hang Seng Index] — on [[Hargreaves Lansdown]]
*[https://www.reuters.com/finance/markets/index?symbol=.HSI Reuters page for .HSI]


{{Hang Seng Index}}
----
{{Economy of Hong Kong navbox}}
{{Asian Stock market indexes}}


[[Category:Hang Seng Index| ]]
== External Links ==
[[Category:Hong Kong stock market indices| ]]
* [http://www.hsi.com.hk/ '''HSI Services'''] - Company website
[[Category:1964 establishments in Hong Kong]]
* [http://www.trahk.com.hk/eng/hsi.html '''Tracker Fund of HK'''] - Link to the websites of 33 constituent companies of HSI
[[Category:Companies in the Hang Seng Index| ]]
* [http://www.hsi.com.hk/constituent/hist_hsi_historical.pdf '''Changes in the constituent stocks of HSI''']
[[Category:Hang Seng Bank stock market indices| ]]
* [http://www.hkex.com.hk '''HKEx'''] - Hong Kong Exchanges and Clearing Limited (HKEx)
[[Category:Asian stock market indices]]
* [http://www.info.gov.hk/hkma/ '''HKMA'''] - Hong Kong Monetary Authority
* [http://www.info.gov.hk/fsb/ '''FSB'''] - Financial Services Bureau
* [http://www.taprofessional.de/charts/Hang-Seng-Index-Point-and-Figure-Chart.htm '''Hongkong: Hang Seng Index'''] - Hongkong: Hang Seng Index
* [http://finance.yahoo.com/q?s=%5EHSI&d=t '''Quotes of Hang Seng Index'''] - Quotes of Hang Seng Index
* [http://home.netvigator.com/~vivianfu/hsi1.html '''Hang Seng Index Constituent Stocks'''] - Some information of constituent stocks

Latest revision as of 12:29, 23 July 2024

"Hang Seng" redirects here. For the bank with the same name, see Hang Seng Bank. For other uses, see Hang Seng (disambiguation).
Hang Seng Index
Historical logarithmic graph of the Hang Seng Index from 1969 to 2012.
FoundationJuly 31, 1964; 60 years ago (1964-07-31)[1]
OperatorHang Seng Indexes Company
ExchangesHong Kong Stock Exchange
Trading symbolHSI
Constituents82
Weighting methodCapitalization-weighted
Websitehsi.com.hk
Hang Seng Index 2001–2022
Hang Seng Index
Traditional Chinese恒生指數
Simplified Chinese恒生指数
Literal meaningever-growing index
Transcriptions
Standard Mandarin
Hanyu PinyinHéng Shēng zhǐshù
Wade–GilesHeng Sheng chihshu
Yale RomanizationHéng Shēng jřshù
IPA[xə̌ŋ ʂə́ŋʈʂɻ̩̀ʂû]
Yue: Cantonese
Yale RomanizationHàhng sāng jí sóu
JyutpingHang4 sang1 zi2 sou3
IPA[hɐ̏ŋ sɐ́ːŋ tɕǐːsǒu]


The Hang Seng Index (HSI) is a market-capitalization-weighted stock market index in Hong Kong, adjusted for free float. It tracks and records daily changes in the largest companies listed on the Hong Kong Stock Exchange and serves as the primary indicator of overall market performance in Hong Kong. These 82 constituent companies represent about 58% of the capitalisation of the Hong Kong Stock Exchange.[2]

HSI was publicized on November 24, 1969, and is currently compiled and maintained by Hang Seng Indexes Company Limited, which is a wholly owned subsidiary of Hang Seng Bank, one of the largest banks registered and listed in Hong Kong in terms of market capitalisation.[3] It is responsible for compiling, publishing and managing the Hang Seng Index and a range of other stock indexes, such as Hang Seng China Enterprises Index, Hang Seng China AH Index Series, Hang Seng China H-Financials Index, Hang Seng Composite Index Series, Hang Seng China A Industry Top Index, Hang Seng Corporate Sustainability Index Series and Hang Seng Total Return Index Series. Hang Seng in turn, despite being a public company, is controlled by another listed international financial institution HSBC Holdings plc. Both HSBC Holdings and Hang Seng are constituents of the index.

History

[edit]

Ho Sin Hang, chairman of the Hang Seng Bank, conceived the idea of creating the Hang Seng Index as a "Dow Jones Index for Hong Kong".[4][5] Along with Hang Seng Director Lee Quo-wei, he commissioned Hang Seng's head of Research Stanley Kwan to create the index in 1964,[4] the index was initially used for internal reference in the Hang Seng Bank, they debuted the index on November 24, 1969.[5]

Statistics

[edit]

When the Hang Seng Index was first published, its base of 100 points was set equivalent to the stocks' total value as of the market close on July 31, 1964. Its all-time low is 58.61 points, reached retroactively on August 31, 1967, after the base value was established but before the publication of the index. The Hang Seng passed the 10,000 point milestone for the first time in its history on December 10, 1993, and, 13 years later, passed the 20,000 point milestone on December 28, 2006. In less than 10 months, it passed the 30,000 point milestone on October 18, 2007. Its all-time high, set on January 26, 2018, was 33,223.58 points[6] at closing. From October 30, 2007, through March 9, 2008, the index lost 9,426 points or approximately 30%. On September 5, it fell past the 20,000 mark the first time in almost a year to a low of 19,708.39, later closing at 19,933.28. On October 8, 2008, the index closed at 15,431.73, over 50% less than the all-time high and the lowest closing value in over two years. On October 27, 2008, the index further fell to 10,676.29 points, having fallen nearly two-thirds from its all-time peak, but passed the 20,000 point milestone again to 20,063.93 on 24 July 2009. The index reached 25,000.00 on August 19, 2014, reaching as high as 25,201.21 that day, later closing at 24,909.26 points. It continued rising to hit 26,000 on April 8, 2015, with a close of 26,236.86 The following day, it rose to as much as 27,922.67 before closing at 26,944.39. Yet again, another milestone was reached on April 13, 2015, rising to over 28,000 points, or closing to 28,016.34, the highest since December 2007. On July 8, 2015, the index fell as much as 2139 points. On 21 August the index entered a bear market. The index at that point hovered around 18000-19000 points,[7] until it ended in February 2016. On 24 June 2016, the market fell 1,000 points in response to UK EU referendum results that "Leave" won the vote against "Remain". Then, the markets continuously fell on 27 and 28 June 2016 before recovered slightly on 29 June 2016.

Contract Specification

[edit]

The Hang Seng Index is traded as a future on the Hong Kong Futures Exchange (HKFE). The full contract specifications are below:

Contract Specification[8]
Hang Seng Index (HSI )
Contract Size: HK$50 Hang Seng Index Points
Exchange: HKFE
Sector: Index
Tick Size: 1
Tick Value: 50 HKD
Big Point Value (BPV): 50
Denomination: HKD
Decimal Place: 0

Annual Returns

[edit]

The following table shows the annual development of the Hang Seng Index, which was calculated from 1964.[9][10]

Year Closing level Change in Index
in Points 		Change in Index
in %
1965 82.14
1966 79.69 −2.45 −2.98
1967 66.92 −12.77 −16.02
1968 107.55 40.63 60.71
1969 155.47 47.92 44.56
1970 211.64 56.17 36.13
1971 341.36 129.72 61.29
1972 843.40 502.04 147.07
1973 433.68 −409.72 −48.58
1974 171.11 −262.57 −60.54
1975 350.00 178.89 104.55
1976 447.67 97.67 27.91
1977 404.02 −43.65 −9.75
1978 495.51 91.49 22.64
1979 879.38 383.87 77.47
1980 1,473.59 594.21 67.57
1981 1,405.82 −67.77 −4.60
1982 783.82 −622.00 −44.24
1983 874.94 91.12 11.63
1984 1,200.38 567.35 89.62
1985 1,752.45 552.07 45.99
1986 2,568.30 815.85 46.55
1987 2,302.75 −265.55 −10.34
1988 2,687.44 384.69 16.70
1989 2,836.57 149.13 5.55
1990 3,024.55 187.98 6.63
1991 4,297.33 1,272.78 42.08
1992 5,512.39 1,215.06 28.28
1993 11,888.39 6,376.00 115.67
1994 8,191.04 −3,697.40 −31.10
1995 10,073.39 1,882.35 22.98
1996 13,451.45 3,378.06 33.53
1997 10,722.76 −2,728.69 −20.29
1998 10,048.58 −674.18 −6.29
1999 16,962.10 6,913.52 68.80
2000 15,095.53 −1,866.57 −11.00
2001 11,397.21 −3,698.32 −24.50
2002 9,321.29 −2,075.92 −18.21
2003 12,575.94 3,254.65 34.92
2004 14,230.14 1,654.20 13.15
2005 14,876.43 646.29 4.54
2006 19,964.72 5,088.29 34.20
2007 27,812.65 7,847.93 39.31
2008 14,387.48 −13,425.17 −48.27
2009 21,872.50 7,485.02 52.02
2010 23,035.45 1,162.95 5.32
2011 18,434.39 −4,601.06 −19.97
2012 22,656.92 4,222.53 22.91
2013 23,306.39 649.47 2.87
2014 23,605.04 298.65 1.28
2015 21,914.40 −1,690.64 −7.16
2016 22,000.56 86.16 0.39
2017 29,919.15 7,918.59 35.99
2018 25,845.70 −4,073.45 −13.61
2019 28,189.75 2,344.05 9.07
2020 27,231.13 −958.62 −3.40
2021 23,397.67 −3833.46 −14.08
2022 19,781.41 −3,616.26 −15.46
2023 17,047.39 −2,734.02 −13.82

Components

[edit]

On January 2, 1985, four sub-indices were established in order to make the index clearer and to classify constituent stocks into four distinct sectors. There are 82 HSI constituent stocks in total. As of February 2024 they are:[11]

Ticker Name Sub-index
SEHK: 5 HSBC Holdings plc Finance
SEHK: 11 Hang Seng Bank Ltd Finance
SEHK: 388 HKEx Limited Finance
SEHK: 939 China Construction Bank Finance
SEHK: 1299 AIA Group Limited Finance
SEHK: 1398 Industrial and Commercial Bank of China Finance
SEHK: 2318 Ping An Insurance Finance
SEHK: 2388 BOC Hong Kong (Holdings) Ltd Finance
SEHK: 2628 China Life Finance
SEHK: 3968 China Merchants Bank Finance
SEHK: 3988 Bank of China Ltd Finance
SEHK: 2 CLP Holdings Limited Utilities
SEHK: 3 Hong Kong and China Gas Company Limited Utilities
SEHK: 6 Power Assets Holdings Limited Utilities
SEHK: 836 China Resources Power Utilities
SEHK: 1038 Cheung Kong Infrastructure Holdings Limited Utilities
SEHK: 2688 ENN Energy Utilities
SEHK: 12 Henderson Land Development Company Limited Properties
SEHK: 16 Sun Hung Kai Properties Limited Properties
SEHK: 17 New World Development Company Limited Properties
SEHK: 101 Hang Lung Properties Limited Properties
SEHK: 688 China Overseas Land & Investment Limited Properties
SEHK: 823 Link REIT Properties
SEHK: 960 Longfor Properties Properties
SEHK: 1109 China Resources Land Limited Properties
SEHK: 1113 CK Asset Holdings Properties
SEHK: 1209 China Resources Mixc Lifestyle Properties
SEHK: 1997 Wharf Real Estate Investment Company Limited Properties
SEHK: 6098 Country Garden Properties
SEHK: 1 CK Hutchison Holdings Limited Commerce & Industry
SEHK: 27 Galaxy Entertainment Group Ltd. Commerce & Industry
SEHK: 66 MTR Corporation Ltd Commerce & Industry
SEHK: 175 Geely Auto Commerce & Industry
SEHK: 241 Alibaba Health Commerce & Industry
SEHK: 267 CITIC Limited Commerce & Industry
SEHK: 288 WH Group Commerce & Industry
SEHK: 291 China Resources Beer Commerce & Industry
SEHK: 316 Orient Overseas (International) Limited Commerce & Industry
SEHK: 322 Tingyi Commerce & Industry
SEHK: 386 Sinopec Corp Commerce & Industry
SEHK: 669 Techtronic Industries Commerce & Industry
SEHK: 700 Tencent Holdings Limited Commerce & Industry
SEHK: 762 China Unicom Commerce & Industry
SEHK: 857 PetroChina Company Limited Commerce & Industry
SEHK: 868 Xinyi Glass Commerce & Industry
SEHK: 881 Zhongsheng Group Commerce & Industry
SEHK: 883 CNOOC Limited Commerce & Industry
SEHK: 941 China Mobile Ltd Commerce & Industry
SEHK: 968 Xinyi Solar Commerce & Industry
SEHK: 981 Semiconductor Manufacturing International Corporation Commerce & Industry
SEHK: 992 Lenovo Commerce & Industry
SEHK: 1044 Hengan International Group Co. Ltd Commerce & Industry
SEHK: 1088 China Shenhua Energy Commerce & Industry
SEHK: 1093 CSPC Pharmaceutical Group Commerce & Industry
SEHK: 1099 Sinopharm Group Commerce & Industry
SEHK: 1177 Sino Biopharm Commerce & Industry
SEHK: 1211 BYD Company Commerce & Industry
SEHK: 1378 China Hongqiao Group Commerce & Industry
SEHK: 1810 Xiaomi Commerce & Industry
SEHK: 1876 Budweiser Brewing Company APAC Commerce & Industry
SEHK: 1928 Sands China Commerce & Industry
SEHK: 1929 Chow Tai Fook Commerce & Industry
SEHK: 2015 Li Auto Commerce & Industry
SEHK: 2020 Anta Sports Commerce & Industry
SEHK: 2269 WuXi Biologics Commerce & Industry
SEHK: 2313 Shenzhou International Commerce & Industry
SEHK: 2319 Mengniu Dairy Commerce & Industry
SEHK: 2331 Li-Ning Commerce & Industry
SEHK: 2359 WuXi AppTec Commerce & Industry
SEHK: 2382 Sunny Optical Commerce & Industry
SEHK: 2899 Zijin Mining Commerce & Industry
SEHK: 3690 Meituan Commerce & Industry
SEHK: 3692 Hansoh Pharmaceutical Group Commerce & Industry
SEHK: 6618 JD Health Commerce & Industry
SEHK: 6690 Haier Commerce & Industry
SEHK: 6862 Haidilao Commerce & Industry
SEHK: 9618 JD.com Commerce & Industry
SEHK: 9633 Nongfu Spring Commerce & Industry
SEHK: 9888 Baidu Commerce & Industry
SEHK: 9961 Trip.com Group Commerce & Industry
SEHK: 9988 Alibaba Group Commerce & Industry
SEHK: 9999 NetEase Commerce & Industry

The Hang Seng Composite Index Series (恒生綜合指數) was launched on October 3, 2001, targeting on providing a broad standard of the performance of the Hong Kong stock market. It was last revamped on March 8, 2010, and comprises 307 constituents (will become 306 from August 9, 2010[citation needed]). The market capitalisation of these companies accounts for about 95% of the total capitalisation of the stocks in Hong Kong.

To ensure the impartiality of its operation, Hang Seng Indexes Company Limited established an Independent Advisory Committee to give advice on issues pertaining to the indexes, including constituent changes and the development of new indexes.

Hang Seng Industry Classification System

[edit]

Hang Seng Industry Classification System (formerly called Hang Seng Stock Classification System) is a comprehensive system designed for the Hong Kong stock market by Hang Seng Indexes Company Limited. It reflects the stock performance in different sectors. It caters for the unique characteristics of the Hong Kong stock market and maintains the international compatibility with a mapping to international industry classification

General classification guidelines:

i) The sales revenue arising from each business area of a company is the primary parameter of stock classification. Profit or assets will also be taken into consideration where these better reflects the company's business.

ii) A company will be classified into different sectors according to its majority source of sales revenue(or profit or assets if relevant).

iii) Re-classification of a stock's Industry Sector will occur once the company's business has undergone a major change, such as, substantial merger or acquisition.

Industry sectors:

  • Energy (能源業)
  • Material (源材料業)
  • Industrial Goods (工業製品業)
  • Consumer Goods (消費品製造業)
  • Services (服務業)
  • Telecommunications (電訊業)
  • Utilities (公共事業)
  • Financials (金融業)
  • Properties & Construction (地產建築業)
  • Information Technology (資訊科技業)
  • Conglomerates (綜合企業)

Source of information

The classification of each stock is based on the information available to the public, for example the annual reports and company announcements.

Selection criteria for the HSI constituent stocks

[edit]

HSI constituent stocks are selected with the use of extensive analysis, together with external consultation. To be qualified for selection, a company:

  • must be among those that comprise top 90% of the total market value of all ordinary shares;
  • must be among those that comprise top 90% of the total turnover on the Stock Exchange of Hong Kong Limited "SEHK" (香港交易所);
  • should have a listing history of 24 months or meet the requirements of the following Guidelines:

Guidelines for Handling Large-cap Stocks Listed for Less than 24 Months

For a newly listed large-cap stock, the minimum listing time required for inclusion in the stock universe for the HSI review is as follows:

Average MV Rank at Time of Review Minimum Listing History
Top 5 3 Months
6–15 6 Months
16–20 12 Months
21–25 18 Months
Below 25 24 Months

Among the eligible candidates, final selections are based on their:

  • market capitalisation and turnover rankings;
  • representation of the respective sub-sectors within HSI; and
  • financial performance.

Calculation formula for HSI

[edit]

The current Hang Seng Index is calculated from this formula:

Descriptions on parameters:

  • P(t): Current Price at Day t
  • P(t-1): Closing Price at Day (t-1)
  • IS: Issued Shares (Only H-share portion is taken into calculation in case of H-share constituents.)
  • FAF: Freefloat-adjusted Factor, which is between 0 and 1, adjusted quarterly
  • CF: Cap Factor, which is between 0 and 1, adjusted quarterly

Daily reports for HSI

[edit]

Investors in Asian markets monitor the following reports for investment activities:

  • Hang Seng Indexes Daily Bulletin
  • Hang Seng Index (HSI) Constituent Stocks Performance
  • Index Performance Summary
  • Total Return Index Series Daily Bulletin

Representativeness of the HSI

[edit]

The representativeness of the HSI can be studied by the turnover of the whole stock market and by how much its market capitalisation covers. The aggregate market value of the HSI constituent stocks is maintained at approximately 60% of the total market value. This coverage ratio compares favorably with major overseas stock indices.

[edit]

See also

[edit]

References

[edit]
  1. ^ "HANG SENG INDEXES CELEBRATES 50TH ANNIVERSARY OF HANG SENG INDEX BASE DATE" (PDF). Hang Seng Indexes Company Limited. 16 September 2014. Retrieved 4 February 2024.
  2. ^ "AHSI and its Total Return Index" (PDF). August 2015. Archived from the original (PDF) on 2015-09-24. Retrieved 2015-09-21.
  3. ^ "A new chapter for the Hang Seng Index". SCMP. 7 August 2014. Archived from the original on 8 August 2014. Retrieved 4 February 2024.
  4. ^ a b Kwan, Stanley S. K. (2009). The Dragon and the Crown. Hong Kong University Press. pp. 101–131. ISBN 9789622099555.
  5. ^ a b "Stanley Kwan, Hang Seng Index Creator, Dies at 86". The New York Times. 2012-01-10.
  6. ^ "HKEX". www.hkex.com.hk.
  7. ^ Nishizawa, Kana; Haigh, Adam (August 21, 2015). "Hong Kong Stocks Enter Bear Market After Falling From April Peak". Bloomberg L.P. Retrieved August 23, 2015.
  8. ^ "Historical Hang Seng Index Intraday Data (HSI)". PortaraCQG. Retrieved 2022-09-14.
  9. ^ "10年20倍并不是奇迹——香港、美国股指成长的启示(杨老金） - 邹照洪 - 职业日志 - 价值中国网". www.chinavalue.net. Archived from the original on 2016-11-08. Retrieved 2020-01-19.
  10. ^ "HANG SENG INDEX (^HSI) Historical Data - Yahoo Finance". finance.yahoo.com. Retrieved 2020-01-21.
  11. ^ Hang Seng Index 2018-09-23
[edit]
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