Hang Seng Index (HSI)

What Is the Hang Seng Index (HSI)?

The Hang Seng Index or HSI is a free-float market capitalization-weighted index of the sixty biggest companies that trade on the Hong Kong Exchange (HKEx). HKEx is among the biggest stock exchanges in the world, with an aggregate market cap of more than $38 trillion starting around 2022.

It is widely considered the benchmark equity market index for Hong Kong, and frequently a barometer of Asian markets all the more generally.

Figuring out the Hang Seng Index

The Hang Seng is the most widely quoted barometer for the Hong Kong economy and is in many cases utilized as a market benchmark for Hong Kong investors. In light of Hong Kong's status as a special administrative region of China, there are close ties between the two economies, and numerous Chinese companies are listed on the Hong Kong Exchange.

The index means to capture the leadership of the Hong Kong exchange and covers around 65% of its total market capitalization.

How the Hang Seng Index Is Structured

The HSI is a free-float-adjusted market capitalization-weighted index that is calculated and spread in real-time at two-second stretches during the trading hours of the Hong Kong stock exchange (HKEx). The HSI is classified as a price index without adjustments made for cash dividends or warrant bonuses.

A 8% capping is applied to keep away from any single stock mastery of the index. The index targets 60 stocks, however the specific number of constituents can fluctuate somewhat at some random time. As of April 2022, there were, truth be told, 66 stocks in the index. A committee convenes quarterly to assess the index components and choose if companies ought to be added or eliminated.

The biggest constituents of the Hang Seng Index incorporate Tencent, Alibaba, Industrial and Commercial Bank of China, Meituan, and the China Construction Bank.

Hang Seng individuals likewise fall into one of four sub-indexes, including commerce and industry, finance, utilities, and properties.

The Hang Seng HK 35 is a sub-index of just the best 35 Hong-Kong based companies that likewise produce the majority of their incomes outside of mainland China. The Hang Seng Composite is an index of the top 95% of stocks trading on the Hong Kong exchange by market cap, comprising around 500 stocks.

A subsidiary of the Hang Seng Bank keeps up with the Hang Seng Index and has done as such beginning around 1969.

Hang Seng Components

The best thirty holdings in the Hang Seng Index as of April 2022 were (in no specific order):

1. China Mengniu Dairy Company Limited
2. CITIC Limited
3. Techtronic Industries Company Limited
4. Industrial and Commercial Bank of China Limited
5. China Petroleum and Chemical Corporation
6. New World Development Company Limited
7. CLP Holdings Limited
8. The Hong Kong and China Gas Company Limited
9. CSPC Pharmaceutical Group Limited
10. System Entertainment Group Limited
11. Hengan International Group Company Limited
12. Henderson Land Development Company Limited
13. China Resources Land Limited
14. CK Infrastructure Holdings Limited
15. ENN Energy Holdings Limited
16. China Life Insurance Company Limited
17. ANTA Sports Products Limited
18. CNOOC Limited
19. Nongfu Spring Co., Ltd.
20. Li Ning Company Limited
21. Lenovo Group Limited
22. Hang Lung Properties Limited
23. Country Garden Services Holdings Company Limited
24. Xiaomi Corporation
25. AAC Technologies Holdings Inc.
26. WuXi Biologics (Cayman) Inc.
27. Alibaba Health Information Technology Limited
28. Meituan
29. JD.com, Inc.
30. Alibaba Group Holding Limited

Features

• The Hang Seng Index (HSI) is a benchmark for blue-chip stocks traded on the Hong Kong stock exchange.
• The index utilizes a free-float market capitalization weighting scheme with a 10% cap on any one component's index weight.
• The index is composed of four sub-area indices in industry, finance, utilities, and real estate investment trusts.

FAQ

What Is the Biggest Stock Market in Asia?

Japan's stock exchange is the biggest equity market in Asia, and second place has a place with the Shanghai Stock Exchange in mainland China. The Honk Kong Exchange comes in third, trailed by China's Shenzen Exchange.

How Do You Invest In the Hang Seng Index?

On the off chance that you don't live in Hong Kong, you can in any case invest in the HSI through Hong Kong ETFs like the iShares MSCI Hong Kong ETF (EWH) and the Franklin FTSE Hong Kong ETF (FLHK). The KraneShares Hong Kong Tech ETF (KTEC) tracks 30 super advanced stocks in the Hang Seng Composite.

What number of Stocks Are in the Hang Seng Index?

The Hang Seng Index (HSI) is composed of the 60 biggest stocks traded on the Hong Kong Stock Exchange, despite the fact that at some random time, there might be somewhat pretty much than 60. The Hong Kong Exchange, for reference, has the stocks of around 2,500 companies listed.