Hang Seng Index

Last updated
Hang Seng Index
Hang Seng Index.png
Historical logarithmic graph of the Hang Seng Index from 1969 to 2012.
FoundationJuly 31, 1964;59 years ago (1964-07-31) [1]
Operator Hang Seng Indexes Company
Exchanges Hong Kong Stock Exchange
Trading symbolHSI
Constituents82
Weighting method Capitalization-weighted
Website hsi.com.hk
Hang Seng Index 2001-2022 Hang Seng Index.webp
Hang Seng Index 2001–2022
Hang Seng Index
Traditional Chinese 恒生指數
Simplified Chinese 恒生指数
Literal meaningever-growing index

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]

YearClosing levelChange in Index
in Points		Change in Index
in %
196582.14
196679.69−2.45−2.98
196766.92−12.77−16.02
1968107.5540.6360.71
1969155.4747.9244.56
1970211.6456.1736.13
1971341.36129.7261.29
1972843.40502.04147.07
1973433.68−409.72−48.58
1974171.11−262.57−60.54
1975350.00178.89104.55
1976447.6797.6727.91
1977404.02−43.65−9.75
1978495.5191.4922.64
1979879.38383.8777.47
19801,473.59594.2167.57
19811,405.82−67.77−4.60
1982783.82−622.00−44.24
1983874.9491.1211.63
19841,200.38567.3589.62
19851,752.45552.0745.99
19862,568.30815.8546.55
19872,302.75−265.55−10.34
19882,687.44384.6916.70
19892,836.57149.135.55
19903,024.55187.986.63
19914,297.331,272.7842.08
19925,512.391,215.0628.28
199311,888.396,376.00115.67
19948,191.04−3,697.40−31.10
199510,073.391,882.3522.98
199613,451.453,378.0633.53
199710,722.76−2,728.69−20.29
199810,048.58−674.18−6.29
199916,962.106,913.5268.80
200015,095.53−1,866.57−11.00
200111,397.21−3,698.32−24.50
20029,321.29−2,075.92−18.21
200312,575.943,254.6534.92
200414,230.141,654.2013.15
200514,876.43646.294.54
200619,964.725,088.2934.20
200727,812.657,847.9339.31
200814,387.48−13,425.17−48.27
200921,872.507,485.0252.02
201023,035.451,162.955.32
201118,434.39−4,601.06−19.97
201222,656.924,222.5322.91
201323,306.39649.472.87
201423,605.04298.651.28
201521,914.40−1,690.64−7.16
201622,000.5686.160.39
201729,919.157,918.5935.99
201825,845.70−4,073.45−13.61
201928,189.752,344.059.07
202027,231.13−958.62−3.40
202123,397.67−3833.46−14.08
202219,781.41−3,616.26−15.46
202317,047.39−2,734.02−13.82

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]

TickerNameSub-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 LifestyleProperties
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 Information Technology 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 APACCommerce & 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 HealthCommerce & 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:

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:

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 ReviewMinimum Listing History
Top 53 Months
6–156 Months
16–2012 Months
21–2518 Months
Below 2524 Months

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

Calculation formula for HSI

The current Hang Seng Index is calculated from this formula:

Descriptions on parameters:

Daily reports for HSI

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

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.

See also

Related Research Articles

<span class="mw-page-title-main">Hang Seng Bank</span> Hong Kong Bank

Hang Seng Bank Limited is a Hong Kong-based banking and financial services company with headquarters in Central, Hong Kong. It is one of Hong Kong's leading public companies in terms of market capitalisation and is part of the HSBC Group, which holds a majority equity interest in the bank.

The Hang Seng Composite Index is a stock market index of the Stock Exchange of Hong Kong and was launched in 2001. It offers an equivalent of Hong Kong market benchmark that covers around the top 95th percentile of the total market capitalisation of companies listed on the Main Board of the Stock Exchange of Hong Kong (“SEHK”). Its index calculation adopts the freefloat-adjusted market capitalisation methodology, and can be used as a basis for index funds, mutual funds as well as performance benchmarks. Its arguable that the composite index is a better reflection on the overall market performance than the more popular Hang Seng Index, which only cover 50 stocks as opposed to over 480 stocks in the composite index.

The Ting Hai effect, also known as the Adam Cheng effect, is a stock market phenomenon in which there is a sudden and unexplained drop in the stock market whenever a film or a television series starring Hong Kong actor Adam Cheng is released. It still remains as a popular topic among stock brokers, years after the television drama The Greed of Man was broadcast in Hong Kong in late 1992. The effect is named after Ting Hai, the primary antagonist in the drama, who was portrayed by Cheng.

<span class="mw-page-title-main">Hong Kong Exchanges and Clearing</span> Holding company of the Stock Exchange of Hong Kong Ltd. and Hong Kong Futures Exchange Ltd.

Hong Kong Exchanges and Clearing Limited operates a range of equity, commodity, fixed income and currency markets through its wholly owned subsidiaries The Stock Exchange of Hong Kong Limited (SEHK), Hong Kong Futures Exchange Limited (HKFE) and London Metal Exchange (LME).

<span class="mw-page-title-main">Dao Heng Bank</span>

Dao Heng Bank Group Limited was a bank holding company in Hong Kong and it had two major subsidiaries before being acquired, Dao Heng Bank Limited and Overseas Trust Bank Limited.

China Shenhua Energy Company Limited, also known as Shenhua, China Shenhua, or Shenhua Energy, is the largest state-owned coal mining enterprise in Mainland China, and in the world. It is a subsidiary of Shenhua Group. It mines, refines, and sells coal, and generates and sells electric power in the People's Republic of China. It operates coal mines as well as an integrated railway network and a seaport that are primarily used to transport its coal. It also operates power plants in the PRC which are engaged in the generation and sales of coal-based power to provincial and regional electric companies. In the 2020 Forbes Global 2000, China Shenhua Energy was ranked as the 168th -largest public company in the world.

Red chip stocks are the stocks of mainland China companies incorporated outside mainland China and listed in Hong Kong. It refers to businesses based in mainland China and with (majority) shares controlled either directly or indirectly by a government body. This controlling entity could be one or more combinations of the central, provincial or municipal mainland government, with the company listed in Hong Kong to allow private and overseas investment.

Hang Seng China-Affiliated Corporations Index or HSCCI is a stock index of the Stock Exchange of Hong Kong for red chip companies listed on the exchange, which are incorporated outside of mainland China, such as in Bermuda, the Cayman Islands, or Hong Kong, but are majority-owned by the central or regional government of the People's Republic of China.

H shares refer to the shares of companies incorporated in mainland China that are traded on the Hong Kong Stock Exchange. Many companies float their shares simultaneously on the Hong Kong market and one of the two mainland Chinese stock exchanges in Shanghai or Shenzhen, they are known as A+H companies.

Hang Seng China Enterprises Index is a stock market index of The Stock Exchange of Hong Kong for H share, red chip, and P chip.

Henderson Investment Limited, the subsidiary company of Henderson Land Development, involves the development, investment and leasing of the properties in Hong Kong and Mainland China. Other activities include operations and management of department stores, investment in infrastructure projects, provision of cleaning and security guard services, and other investment holdings.

<span class="mw-page-title-main">Miramar Hotel and Investment</span>

Miramar Hotel and Investment Company Limited is a group with a diversified service-oriented business portfolio comprising hotels and serviced apartments, property rental, food and beverage, and travel services in Hong Kong and Mainland China. Miramar Group has been listed on the Hong Kong Stock Exchange since 1970 and is a member of Henderson Land Group.

The SZSE Component Index is an index of 500 stocks that are traded at the Shenzhen Stock Exchange (SZSE). It is the main stock market index of SZSE.

Shanghai-Hong Kong Stock Connect is a cross-boundary investment channel that connects the Shanghai Stock Exchange and the Hong Kong Stock Exchange. Under the program, investors in each market are able to trade shares on the other market using their local brokers and clearing houses. Chinese Premier Li Keqiang announced the programme on 10 April 2014. The scheme launched on 17 November 2014.

Hang Seng China 50 Index is a pan-China stock market index to represent the top 50 China-based companies in the stock exchanges of Hong Kong, Shanghai and Shenzhen, which covers A share, H share, red chip and P chip

Hang Seng Global Composite Index (HSGCI) is one of the Hong Kong stock market indexes produced by the Hang Seng Indexes Company Limited. HSGCI was launched on 5 September 2011. It serves as an index that reflects the overall performance of all companies listed on the Stock Exchange of Hong Kong ("HKEX").

Hang Seng China H-Financials Index (H-FIN) is one of the Hong Kong stock market indexes produced by the Hang Seng Indexes Company Limited. H-FIN was launched on 27 November 2006. It is used to reflect the performance of all China financial stocks listed in Hong Kong.

Hang Seng China A Industry Top Index (HSCAIT) is one of the Hong Kong stock market indexes produced by the Hang Seng Indexes Company Limited. HSCAIT was launched on 21 Sep 2009. It is used to reflect the performance of A-share index that captures all the industry leaders in mainland China. The performance of industry leaders in each of the 11 industries under the Hang Seng Industry Classification System is tracked through this index.

Hang Seng Indexes Company Limited is a private company in Hong Kong and wholly owned by Hang Seng Bank. HSI was founded in 1984 and is the major provider of stock market indexes on Hong Kong and China stock markets such as in Shanghai and Shenzhen.

<span class="mw-page-title-main">Xinyi Solar</span> Chinese solar company

Xinyi Solar Holdings Limited was formed in 2008 in Dongguan when Xinyi Glass split off its solar photovoltaic glass development, manufacturing, sale, and customer service. It is the largest solar cover glass producer in the world and has a 30% market share, according to JP Morgan Asia Pacific Equity Research. Xinyi Solar's chair is Lee Yin Yee. About 23% of the company is owned by Xinyi Glass.

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. 1 2 Kwan, Stanley S. K. (2009). The Dragon and the Crown. Hong Kong University Press. pp.  101–131. ISBN   9789622099555.
  5. 1 2 "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. 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
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.