Hong Kong 50

The Hang Seng Index (HSI) is a free-float market capitalisation-weighted index that tracks the largest and most liquid companies listed on the Hong Kong Stock Exchange (HKEx). It is widely regarded as the benchmark index for the Hong Kong equity market and is also seen as an indicator of broader Asian market performance.

The index was launched in 1969, based on a value of 100 from 31 July 1964. As of December 2023, it included 82 constituent companies, representing around 65 percent of the total market capitalisation of the HKEx. These companies are grouped into four main sub-indexes: finance, utilities, properties, and commerce and industry. To prevent any single stock from dominating the index, the HSI applies an 8 percent capping rule on individual components.

The HSI is maintained by Hang Seng Indexes Company Limited, a wholly owned subsidiary of Hang Seng Bank. The value of the index is calculated in real time during HKEx trading hours and is updated every two seconds. The HSI is a price index, meaning it does not adjust for dividends or other payouts.

Among the top constituents of the index in December 2023 were HSBC Holdings, Alibaba, Tencent, AIA Group, and China Construction Bank. Sector representation in the index is led by financials, followed by information technology and consumer discretionary companies, among others.

There are related indexes as well, such as the Hang Seng HK 35, which includes companies with most of their revenue generated outside mainland China, and the Hang Seng Composite Index, which covers approximately 95 percent of the market capitalisation of HKEx and includes around 500 stocks.

Investors can access the HSI through exchange-traded funds (ETFs), such as the iShares MSCI Hong Kong ETF, Franklin FTSE Hong Kong ETF, and KraneShares Hong Kong Tech ETF.

As of early 2024, China’s stock exchange remained the largest in Asia by market capitalisation. India’s stock market had overtaken Hong Kong’s to become the fourth-largest globally by market size.

The HSI continues to serve as the primary measure of performance for the Hong Kong Stock Exchange and is a key reference for investors and analysts monitoring the region’s economic and financial trends.