Hang Seng Index

What is the Hang Seng Index?

The Hang Seng Index is the Market capitalization-weighted index that regulates for the biggest companies trading on the Hong Kong Exchange.

The Hang Seng Bank subsidiary is the one that maintains this index and has been on the job since 1969. The index objectifies to seize the Hong Kong exchange’s leadership and covers almost 65% of the total market capitalization.

Basically, the Hang Seng is the most extensively quoted barometer for the Economy of Hong Kong and is generally used in the form of a market benchmark for investors in Hong Kong. Considering that HK is regarded as the unique administrative region of China, these two economies have close ties and several Chinese companies have been listed on the Hong Kong Exchange.

Furthermore, the members of Hang Seng also fall into one out of four sub-indexes, such as properties, utilities, finance, and commerce and Industry. To avert single stock domination of this index, a 10% capping gets applied.

A committee is summoned periodically to assess the components of the index and comprehend whether companies should be removed or added. Thus, in a way, the HSI is one free Float-adjusted market capitalization-weighted index that is evaluated and dispersed in real-time with an interval of 2-seconds during the Hong Kong stock exchange’s trading hour.

Components of the Hang Seng Index

In the Hang Seng Index, below-mentioned are the top 30 holdings, as of January 2020:

• AAC Technologies Holdings Inc.
• AIA Group Limited
• BOC Hong Kong (Holdings) Limited
• China Petroleum & Chemical Corporation
• China Mobile Limited
• CK Infrastructure Holdings Limited
• CLP Holdings Limited
• China Life Insurance Company Limited
• CITIC Limited
• CSPC Pharmaceutical Group Limited
• CNOOC Limited
• China Mengniu Dairy Company Limited
• China Resources Land Limited
• Galaxy Entertainment Group Limited
• Henderson Land Development Company Limited
• Hang Lung Properties Limited
• Hang Seng Bank Limited
• Hengan International Group Company Limited
• Hong Kong and China Gas Company Limited
• Industrial and Commercial Bank of China Limited
• New World Development Company Limited
• Power Assets Holdings Limited
• Ping An insurance (Group) Company of China, Ltd.
• Sun Hung Kai Properties Limited
• Sino Land Company Limited
• Sands China Ltd.
• Tencent Holdings Limited
• Techtronic Industries Company Limited
• Wharf Real Estate Investment Company Limited
• WH Group Limited