What is the Hang Seng index?
The Hang Seng Index (HSI) is freefloat-adjusted market capitalization-weighted stock market index and is the main indicator of the market performance in Hong Kong. It monitors daily the 50 largest and most liquid stocks listed on the main board of the Stock Exchange of Hong Kong.
Key takeaways
The Hang Seng Index is a freefloat-adjusted market capitalization-weighted index tracking the 50 largest and most liquid stocks on the Hong Kong Stock Exchange, serving as the main indicator of Hong Kong's market performance.
Often considered Hong Kong's equivalent to the Dow Jones Index, the Hang Seng is the most widely quoted gauge of Hong Kong's stock market and is featured in daily news programmes worldwide.
The index organizes stocks under four sub-indices—Finance, Utilities, Properties, and Commerce & Industry—and was established in 1969 by the chairman of Hang Seng Bank.
Since its inception, the Hang Seng's value has fluctuated significantly, ranging from a historic low of 58 to a peak of over 31,600 in 2007.
Due to Hong Kong's status as a special administrative region of China and their close ties, many Chinese companies choose to list on the Hang Seng Index.
Where have you heard about the Hang Seng?
It is the most widely quoted gauge of the Hong Kong stock market and is mentioned in market round-ups on daily news programmes around the world.
What you need to know about the Hang Seng.
The Hang Seng index is often thought of as the Dow Jones Index for Hong Kong. Its stocks are grouped under four sub-indices:
- Finance
- Utilities
- Properties
- Commerce & Industry
The index was set up in 1969 by the then chairman of the Hang Seng Bank. It's value has varied over the years from a low of 58 to a high of over 31,600 in 2007.
There are close ties between Hong Kong and China because of the former's status as a special administrative region of China. As a result, many Chinese companies list on the Hang Seng.