Hang Seng Index (HSI)

QUOTE AND NEWS
The Economic Times  6 hrs ago  Comment 
The Hang Seng index fell 1.0 percent, to 23,027.85, while the China Enterprises Index lost 0.2 per cent, to 11,212.65 points.
MarketWatch  Dec 15  Comment 
Here are the latest trading levels for Asia's major stock markets: Tokyo (Nikkei Average) down 1.5% ; Hong Kong (Hang Seng Index) down 1.1% ; Shanghai (Shanghai Composite Index) down 0.2% ; Sydney (S&P/ASX 200) down 0.6% (closed) ; Seoul (Kospi)...
Financial Times  Dec 12  Comment 
Nikkei up ahead of Japan’s election this weekend
MarketWatch  Dec 12  Comment 
Here are the latest trading levels for Asia's major stock markets: Tokyo (Nikkei Average) up 1.4% ; Hong Kong (Hang Seng Index) up 0.1% (at break) ; Shanghai (Shanghai Composite Index) flat (at break) ; Sydney (S&P/ASX 200) down 0.1% ; Seoul...
Financial Times  Dec 11  Comment 
European stocks weak as oil revisits 5-year lows
The Hindu Business Line  Dec 10  Comment 
Hong Kong shares finished slightly higher on Wednesday, erasing morning losses, following a rebound in mainland markets from the previous day’s plunge. The Hang Seng index rose 0.2 per ce...
MarketWatch  Dec 9  Comment 
Here are the latest trading levels for Asia's major stock markets: Tokyo (Nikkei Average) down 0.8% ; Hong Kong (Hang Seng Index) down 1.5% ; Shanghai (Shanghai Composite Index) down 0.7% ; Sydney (S&P/ASX 200) down 1.7% (closed) ; Seoul (Kospi)...
MarketWatch  Dec 8  Comment 
Here are the latest trading levels for Asia's major stock markets: Tokyo (Nikkei Average) up 0.1% (closed) ; Hong Kong (Hang Seng Index) up 0.5% ; Shanghai (Shanghai Composite Index) up 3% ; Sydney (S&P/ASX 200) up 0.7% (closed) ; Seoul (Kospi)...
Market Intelligence Center  Nov 26  Comment 
U.S. markets are flat this morning. The S&P 500 is up 0.01% and the Dow is up 0.04%. Initial claims for unemployment rose to 313,000 from 291,000 last week.  Asian markets were mixed on Wednesday with Japanese stocks breaking a three day win...
The Economic Times  Nov 19  Comment 
The Hang Seng Index unofficially closed down 0.7 per cent, at 23,373.31 points. The Hong Kong China Enterprises Index fell 0.4 per cent, to 10,380.56 points.




 
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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