Hang Seng Index

"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.
Foundation	July 31, 1964;59 years ago (1964-07-31) [1]
Operator	Hang Seng Indexes Company
Exchanges	Hong Kong Stock Exchange
Trading symbol	HSI
Constituents	82
Weighting method	Capitalization-weighted
Website	hsi.com.hk

Hang Seng Index 2001–2022

Hang Seng Index
Traditional Chinese	恒生指數
Simplified Chinese	恒生指数
Literal meaning	ever-growing index
Transcriptions Standard Mandarin Hanyu Pinyin Héng Shēng zhǐshù Wade–Giles Heng Sheng chihshu Yale Romanization Héng Shēng jřshù IPA [xə̌ŋ ʂə́ŋʈʂɻ̩̀ʂû] Yue: Cantonese Yale Romanization Hàhng sāng jí sóu Jyutping Hang4 sang1 zi2 sou3 IPA [hɐ̏ŋsɐ́ːŋtɕǐːsǒu]

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

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

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

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

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

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

The current Hang Seng Index is calculated from this formula:

${\displaystyle {\textrm {Current~Index}}={\frac {\sum {\textrm {[}}{\textrm {P(t)}}\times {\textrm {IS}}\times {\textrm {FAF}}\times {\textrm {CF}}{\textrm {]}}}{\sum {\textrm {[}}{\textrm {P(t-1)}}\times {\textrm {IS}}\times {\textrm {FAF}}\times {\textrm {CF}}{\textrm {]}}}}\times {\textrm {Yesterday's~Closing~Index}}.}$

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

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

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 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

• Hong Kong portal
• Economy portal

• Dow Jones Industrial Average
• Nikkei 225
• SSE Composite Index
• SZSE Component Index
• FTSE China A50 Index

References

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. Kwan, Stanley S. K. (2009). The Dragon and the Crown. Hong Kong University Press. pp.  101–131. ISBN   9789622099555.
5. "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

External links

• Bloomberg page for HSI:IND
• Official website (in English and Chinese)
• Hang Seng Index — on Hargreaves Lansdown
• Reuters page for .HSI