Hang Seng Index (HSI)

QUOTE AND NEWS
Reuters  Nov 7  Comment 
Hong Kong's stock index compiler said on Friday that The Link Real Estate Investment Trust will become a component of the Hang Seng Index , while COSCO Pacific Ltd will be removed from the benchmark.
Market Intelligence Center  Nov 4  Comment 
U.S. markets are slipping slightly on Tuesday as a stream of earnings reports are due today. The S&P 500 is down 0.16% and the Dow has dropped 0.10%. In Asia, markets were mixed, as Tokyo stocks reached their highest level in seven years. The...
Market Intelligence Center  Nov 3  Comment 
After a strong close of October, U.S. markets are slipping down slightly on the first trading day of November. The S&P 500 is down 0.15% and the Dow has dropped 0.19%. On Monday, Asian markets were mixed after low Chinese manufacturing data. The...
The Economic Times  Oct 31  Comment 
The Hang Seng Index jumped 296.02 points to 23,998.06 on turnover of HK$82.94 billion ($10.70 billion).
The Economic Times  Oct 30  Comment 
The Hang Seng Index eased 117.83 points to 23,702.04 on turnover of HK$67.58 billion ($8.72 billion).
Market Intelligence Center  Oct 24  Comment 
U.S. stocks are falling this morning after a doctor in New York city was diagnosed with Ebola. The S&P 500 is down 0.33% and the Dow has dropped 0.23%. Asian markets were mixed on Friday as Japanese stocks led the gainers. The Nikkei rose 1.01%...
The Economic Times  Oct 23  Comment 
The benchmark Hang Seng Index dipped 83.69 points to 23,320.28 by the break on turnover of HK$25.62 billion ($3.31 billion).
The Economic Times  Oct 22  Comment 
The benchmark Hang Seng Index jumped 302.57 points to 23,391.15 by the break on turnover of HK$31.75 billion ($4.10 billion).
Market Intelligence Center  Oct 21  Comment 
U.S. stocks are rising Tuesday morning after starting the week on a positive note. The S&P 500 is up 0.61% and the Dow is up 0.45%. Asian were mixed Tuesday as data showed the slow third quarter economic growth in China. The Nikkei was down 2.03%...
Market Intelligence Center  Oct 20  Comment 
U.S. stocks are down slightly to start the week. The S&P 500 is down 0.28% and the Dow is off 0.57%. Asian stocks were up on Monday as Tokyo markets rallied for big gains. The Nikkei was up 3.98% and the Hang Seng rose 0.20%. European markets...




 
TOP CONTRIBUTORS


The Hang Seng index is a market capitalization weighted index that follows the top 40 or so companies that trade on the Hong Kong Stock Exchange. The index covers over 65% of the total market capitalization of the exchange[1].The index is maintained and published by the Hang Seng Indexes Company Ltd, a subsidary of the Hang Seng Bank in HK, since 1969. These companies are classified into sub categories namely, Commerce and Industry, Finance, Properties and Utilities. These sub-categories are published as indexes as well.

Stock Selection Criteria

Constituent stocks of the HSI are selected by a rigorous process of detailed analysis, supported by extensive external consultation. To be eligible for selection, a company:

  • must be among those companies that constitute the top 90% of the total market value of all eligible shares listed on the SEHK (market value is expressed as an average of the past 12 months);
  • must be among those companies that constitute the top 90% of the total turnover of all eligible shares listed on the SEHK (turnover is aggregated and individually assessed for eight quarterly sub-periods over the past 24 months); and
  • should normally have a listing history of at least 24 months on the SEHK[2]

Weighting

The Hang Seng is calculated with this formula:

Image: F hscei.gif[3]

Image: F_hscei_2.gif[4]

Image: F_hscei_3.gif[5]

Free Float Adjustment

The Free float Adjustment factor, or FAF for short, represents the proportion of shares that is freefloated as a percentage of issued shares and then its rounded up to the nearest mulitple of 5% for calculation purposes. The compilation with a Cap factor was switched to the FAF, September 2006 onwards. The cap factor was originally calculated in each regular half yearly, such that none of the stocks weighed in more than 15% percent.

To find the free-float capitalization of a company, first find its market cap (number of outstanding shares x share price) then multiply its free-float factor.

The free-float factor is determined by the percentage of floated shares to outstanding. For example, if a company has a float of 4 million shares and outstanding shares of 5 million, the percent of float to outstanding is 80%. A company with an 80% free float falls in the 75-80% free-float factor, or 0.80, which is then multiplied by its market cap. For example: $120 million (12 million shares at $10/share) x 0.80 = $96 million.[6]

Composition

The composition of the Hang Seng Index, as of 8th March, 2010:[7]

COMPANY NAME TICKER (HK:) Hang Seng Sub Index
Cheung Kong Holdings Ltd00001Properties
CLP Holdings Ltd00002Utilities
HK & China Gas00003Utilities
Wharf Holdings Ltd00004Commerce and Industry
HSBC Holdings PLC (HSBA-LN)00005Finance
Hong Kong Electric Holdings Ltd00006Utilities
Hang Seng Bank00011Finance
Henderson Land Development Company Ltd00012Properties
Hutchison Whampoa Limited (HKG:0013)00013Commerce and Industry
Sun Hung Kai Properties Ltd00016Properties
New World Development Co Ltd00017Commerce and Industry
Swire Pacific Ltd 'A'00019Commerce and Industry
Bank of East Asia00023Finance
MTR Corporation00066Commerce and Industry
Sino Land Co Ltd00083Properties
Hang Lung Properties Ltd00101Properties
China Merchants Holdings (International) Co Ltd00144Commerce and Industry
CITIC Pacific Ltd00267Commerce and Industry
China Resources Enterprise Ltd00291Commerce and Industry
Cathay Pacific Airways Ltd00293Commerce and Industry
Esprit Holdings Ltd00330Commerce and Industry
SINOPEC Shangai Petrochemical Company (SNP)00386Commerce and Industry
HKEx Ltd 00388Finance
Li and Fung00494Commerce and Industry
China Overseas Land and Investment Ltd00688Properties
Tencent (TCEHF)00700Commerce and Industry
CHINA UNICOM (CHU)00762Commerce and Industry
China Res Power00836Utilities
PetroChina Company (PTR) 00857Commerce and Industry
CNOOC, Ltd. (CEO)00883Commerce and Industry
China Construction Bank00939Finance
China Mobile (Hong Kong) (CHL)00941Commerce and Industry
China Shenhua Energy Company Ltd01088Commerce and Industry
China Res Land01109Properties
COSCO Pacific Ltd01199Commerce and Industry
Industrial and Commercial Bank of China01398Finance
Foxconn International Holdings Ltd02038Commerce and Industry
Ping An Insurance (PNGAY.PK)02318Finance
Bank of Commerce Holdings (CA) (BOCH)02388Finance
Aluminum Corporation of China (ACH)02600Commerce and Industry
China Life Insurance Company (LFC)02628Finance
Bank of Communications Ltd03328Finance
Bank of China (HKG:3988)03398Finance

References

  1. Investopedia
  2. Hang Seng Index Selection Criteria
  3. HSI Formula
  4. HSI Formula
  5. HSI Formula
  6. Investopedia.com
  7. Constituent Contribution to Hang Seng Index Change
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