The Hang Seng Index (HSI) is a market-capitalisation-weightedstock market index in Hong Kong adjusted for free float. It tracks and records daily changes in the largest stock listings 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]
Ho Sin Hang,founding 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]
In the derivatives market,the Hang Seng Index is traded as a futures contract on the Hong Kong Futures Exchange (HKFE). The full contract specifications are below:
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[13] 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,[14] 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.
Annual returns
The following table shows the annual development of the Hang Seng Index, which was calculated from 1964.[15]
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
−3,833.46
−14.08
2022
19,781.41
−3,616.26
−15.46
2023
17,047.39
−2,734.02
−13.82
2024
20,059.95
3,012.56
17.67
2025
25,630.54
5,570.59
27.77
Components
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:[16]
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