Hang Seng 50 trading

Trade the Hang Seng 50 stock index and take advantage of the rising and falling prices with low fees and powerful trading tools

Trade Hang Seng 50

The Hang Seng 50 Index is a pan-China stock market index that represents the top 50 China-based companies in the stock exchanges of Hong Kong, Shanghai and Shenzhen. It covers A shares, from mainland China; H shares, from Hong Kong; Red Chips, shares circulated in Hong Kong from the companies incorporated outside mainland China; and P Chips, shares circulated in Hong Kong from the companies with a private background.

PrimeXBT is a cutting-edge online trading platform offering traders all the tools necessary to trade in the Hang Seng 50 market.

Why trade Hang Seng 50 with PrimeXBT

  • Robust, powerful trading platformExperience a trading platform that meets all your needs. Trade Hang Seng 50 with PrimeXBT’s award-winning software and products.
  • Competitive fee scheduleSave almost all of your profits and avoid high commission and hidden fees that usually come with trading. Benefit from PrimeXBT’s low commission rates and tight spreads.
  • Intuitive, user-friendly tradingEnjoy the powerful trading tools and easy-to-use PrimeXBT platform that boasts a range of integrated trading chart widgets, multi-monitor functionality, and customizable trading interface.
  • Advanced charting toolsTake your trading with the Hang Seng 50 to a new level with trading tools that allow you full control over your experience with over 50 different technical indicators.
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How does Hang Seng trading with leverage work?

Trading the Hang Seng 50 with margin is essentially allowing you to make a bigger trade than you have capital available for by borrowing the additional funds from PrimeXBT. The position you open will not require the full amount to be deposited but rather the margin will instead be used as collateral.

If your trade on the Hang Seng 50 is successful under the margin, you will be able to earn additional profit too. However, the risk is that if the trade is unsuccessful the losses can be magnified too.

The benefits of Hang Seng trading with leverage

  • Magnified profitsMargin trading is popular because of its potential to turn lower capital into bigger returns from successful trades. Margin trading is one of the most effective ways to increase potential returns.
  • Gearing opportunitiesMargin trading means there is more available traders' capital left on the account which can be used to open new positions. Freeing up capital to open new positions like this is known as gearing.
  • Gaining from the market fallThe volatile Hang Send 50 market means there are times when the price will be falling and by using margin trading to open short positions a trader can profit from a market that is falling.

Hang Seng 50 leverage trading example

For example, If a trader takes a long position of $2,000 on the Hang Seng 50 and it rises by 10%, using 5x leverage the same rise becomes a 50% profit, or $1,000. A similar spot trade without leverage would result in only 10% profit, or $200.

Disclaimer: Margin trading also comes with inherent risks if the position moves against the trade. You should never utilize 100% leverage and never invest more than you can afford to lose.

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How to start trading Hang Seng 50

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What is Hang Seng?

The Hang Seng 50 is an index that tracks the 50 largest companies on the Hong Kong Stock Exchange, and is compiled and sustained by a subsidiary of Hang Seng Bank in Hong Kong, the Hang Seng Indexes Company.

The Hang Seng 50 can be composed of securities from all sectors, and the Hang Seng 50 is separate from other related indices such as the Hang Seng China Index, which is composed of the top securities from all Chinese stock markets.

Hang Seng history

The Hang Seng 30 was launched on November 24, 1969, after the chairman of the Hang Seng Bank came up with the idea of creating the Dow Jones Index for Hong Kong. The Hang Seng’s initial base points of 100 represented the value of all included stock at the time of launch. As a testament to the growth of China since the 70’s until today, the index currently sits at over 26,000 points.

The milestone of 10,000 points was first reached in 1993, with 20,000 points being surpassed in 2006. The all time high value of the Hang Seng 30 was 33,223.58 points on January 26, 2018. The index’s all time low was 58.61 points on August 31, 1967, although this was retroactively calculated.

Hang Seng 50 Index composition

The Hang Seng 50 is composed of 4 sub-indexes: Hang Seng Finance Sub-Index, Hang Seng Utilities Sub-Index, Hang Seng Properties Sub-Index and the Hang Seng Commerce and Industry Sub-Index.

These sub-indexes are themselves composed of some of the largest global companies and institutions including HSBC, AIA Group Ltd., Tencent Holdings Ltd., China Unicom Ltd., Swire Group and Wharf Real Estate Investment Company Ltd.

Top 10 Companies Represented by Hang Seng and their Index Weighting

CompanyIndex Weighting (%)
HSBC HOLDINGS10.53
AIA9.57
TENCENT9.23
CCB7.78
PING AN5.98
ICBC4.68
CHINA MOBILE4.54
HKEX3.26
BANK OF CHINA2.9
CNOOC2.44
*information as of May 2020

Why is the Hang Seng Index important to traders?

The Hong Kong Stock Exchange is one of the largest and most well-known stock exchanges in the world, and the Hang Seng 50 represents one of the world’s biggest growth markets. The Chinese economy has boomed throughout the past 4 decades, and Hong Kong has been a global financial power throughout that period.

Many of the world’s leading financial institutions are included in the Hang Seng 50, and its performance can provide important indications as to the health of the Chinese market, as well as the health of global financial markets as a whole.

How is Hang Seng calculated?

The Hang Seng 50 is a free float-adjusted, market-capitalization-weighted index. What this means is that the index value is first calculated by multiplying the total value of their outstanding shares by each of the securities’ last sale prices, and then weighting that in relation to the size of each of the other securities in the index.

Following this, a float factor is designated to each security to account for the amount of total shares that are publicly held, as opposed to being held by those within the company or a government body.

Why does trading Hang Seng with CFDs make sense?

The Hang Seng 50 is a stock index rather than a single company stock which means that the growth of the index is pushed along by 50 major companies. For traders, this means the risk is mitigated as one company’s poor performance won’t impact the index too much, and when there is a growth in macroeconomic factors, most of the top companies will benefit together.

PrimeXBT’s ultra-fast order execution and its stable, reliable trading engine ensures the tightest spreads and best trading experience. The trading platform is packed with advanced trading tools, such as long and short positions, advanced order types such as stop loss and take profit orders.

The platform is also safe, secure, and offers 24/7 customer support service via a live chat, community channels, and much more.

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