Hang Seng Index - Hang Seng Market

The Hang Seng Index (abbreviated: HSI, Chinese: æ'ç"ŸæŒ‡æ•¸) is a freefloat-adjusted market capitalization-weighted stock market index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator of the overall market performance in Hong Kong. These 50 constituent companies represent about 58% of the capitalisation of the Hong Kong Stock Exchange.

HSI was started on November 24, 1969, and is currently compiled and maintained by Hang Seng Indexes Company Limited, which is a wholly owned subsidiary of Hang Seng Bank, one of the largest banks registered and listed in Hong Kong in terms of market capitalisation. It is responsible for compiling, publishing and managing the Hang Seng Index and a range of other stock indexes, such as Hang Seng China Enterprises Index, Hang Seng China AH Index Series, Hang Seng China H-Financials Index, Hang Seng Composite Index Series, Hang Seng China A Industry Top Index, Hang Seng Corporate Sustainability Index Series and Hang Seng Total Return Index Series. Hang Seng in turn, despite being a public company, is held in majority by British financial firm HSBC.

History

source : jhunjhunwalas.wordpress.com

Ho Sin Hang, chairman of the Hang Seng Bank, conceived the idea of creating the Hang Seng Index as a "Dow Jones Index for Hong Kong". Along with Hang Seng Director Lee Quo-wei, he commissioned Hang Seng's head of Research Stanley Kwan to create the index, which debuted on November 24, 1969.

Statistics

source : businessforecastblog.com

When the Hang Seng Index was first published, its base of 100 points was set equivalent to the stocks' total value as of the market close on July 31, 1964. Its all-time low is 58.61 points, reached retroactively on August 31, 1967, after the base value was established but before the publication of the index. The Hang Seng passed the 10,000 point milestone for the first time in its history on December 10, 1993 and, 13 years later, passed the 20,000 point milestone on December 28, 2006. In less than 10 months, it passed the 30,000 point milestone on October 18, 2007. Its all-time high, set on October 30, 2007, was 31,958.41 points during trading and 31,638.22 points at closing. From October 30, 2007 through March 9, 2008, the index lost 9,426 points or approximately 30%. On September 5, it fell past the 20,000 mark the first time in almost a year to a low of 19,708.39, later closing at 19,933.28. On October 8, 2008, the index closed at 15,431.73, over 50% less than the all-time high and the lowest closing value in over two years. On October 27, 2008, the index further fell to 10,676.29 points, having fallen nearly two-thirds from its all-time peak, but passed the 20,000 point milestone again to 20,063.93 on 24 July 2009. The index reached 25,000.00 on August 19, 2014, reaching as high as 25,201.21 that day, later closing at 24,909.26 points. It continued rising to hit 26,000 on April 8, 2015 with a close of 26,236.86 The following day, it rose to as much as 27,922.67 before closing at 26,944.39. Yet again, another milestone was reached on April 13, 2015 rising to over 28,000 points, or closing to 28,016.34, the highest since December 2007. On July 8, 2015, the index fell as much as 2139 points. On 21 August the index entered a bear market. The index is hovering around 18000-19000 points. In 24 June 2016, the market fell 1,000 points in respond to UK EU referendum results that "Leave" won the vote against "Remain". Then, the markets continuously fell on 27 and 28 June 2016 before recovered sightly on 29 June 2016.

Components

source : elliottwavepredictions.com

On January 2, 1985, four sub-indices were established in order to make the index clearer and to classify constituent stocks into four distinct sectors. There are 50 HSI constituent stocks in total. As of February 13, 2017 they are:

Hang Seng Finance Sub-index

0939 China Construction Bank
0005 HSBC Holdings plc
1299 AIA Group Limited
1398 Industrial and Commercial Bank of China
2388 BOC Hong Kong (Holdings) Ltd
2318 Ping An Insurance
3988 Bank of China Ltd
3328 Bank of Communications Ltd
0011 Hang Seng Bank Ltd
2628 China Life
0388 HKEx Limited
0023 Bank of East Asia, Ltd

Hang Seng Utilities Sub-index

0002 CLP Holdings Limited
0003 Hong Kong and China Gas Company Limited
0006 Power Assets Holdings Limited
0836 China Resources Power
1038 Cheung Kong Infrastructure Holdings Limited

Hang Seng Properties Sub-index

0016 Sun Hung Kai Properties Limited
1113 CK Property Holdings Limited
0688 China Overseas Land & Investment Limited
0004 Wharf (Holdings) Limited
0012 Henderson Land Development Company Limited
1109 China Resources Land Limited
0101 Hang Lung Properties Limited
0017 New World Development Company Limited
0083 Sino Land Company Limited
0823 The Link REIT

Hang Seng Commerce & Industry Sub-index

0941 China Mobile Ltd
0700 Tencent Holdings Limited
0883 CNOOC Ltd
0001 CK Hutchison Holdings Limited
0267 CITIC Pacific Ltd
1928 Sands China
0762 China Unicom (Hong Kong) Limited
0027 Galaxy Entertainment Group Ltd.
0066 MTR Corporation Ltd
0857 PetroChina Company Limited
0386 Sinopec Corp
0151 Want Want China Holdings Ltd
0992 Lenovo Group
0322 Tingyi (Cayman Islands) Holding Corp
1044 Hengan International Group Co. Ltd
0019 Swire Group
1088 China Shenhua Energy
1880 Belle International
0144 China Merchants Holdings (International)
0293 Cathay Pacific Airways Ltd
2319 Mengniu Dairy
0135 Kunlun Energy
0175 Geely Auto

The Hang Seng Composite Index Series (æ'ç"Ÿç¶œåˆæŒ‡æ•¸) was launched on October 3, 2001, targeting on providing a broad standard of the performance of the Hong Kong stock market. It was last revamped on March 8, 2010, and comprises 307 constituents (will become 306 from August 9, 2010). The market capitalisation of these companies accounts for about 95% of the total capitalisation of the stocks in Hong Kong.

To ensure the impartiality of its operation, Hang Seng Indexes Company Limited established an Independent Advisory Committee to give advice on issues pertaining to the indexes, including constituent changes and the development of new indexes.

Hang Seng Industry Classification System

source : www.terraseeds.com

Hang Seng Industry Classification System (formerly called Hang Seng Stock Classification System) is a comprehensive system designed for the Hong Kong stock market by Hang Seng Indexes Company Limited. It reflects the stock performance in different sectors. It caters for the unique characteristics of the Hong Kong stock market and maintains the international compatibility with a mapping to international industry classification

General classification guidelines:

i) The sales revenue arising from each business area of a company is the primary parameter of stock classification. Profit or assets will also be taken into consideration where these better reflects the company's business.

ii) A company will be classified into different sectors according to its majority source of sales revenue(or profit or assets if relevant).

iii) Re-classification of a stock's Industry Sector will occur once the company's business has undergone a major change, such as, substantial merger or acquisition.

Industry sectors:

Energy (èƒ½æºæ¥)
Material (æºææ–™æ¥)
Industrial Goods (å·¥æ¥è£½å"æ¥)
Consumer Goods (æ¶ˆè²»å"è£½é€ æ¥)
Services (æœå‹™æ¥)
Telecommunications (é›»è¨Šæ¥)
Utilities (å…¬å…±äº‹æ¥)
Financials (é‡'èžæ¥)
Properties & Construction (åœ°ç"¢å»ºç¯‰æ¥)
Information Technology (è³‡è¨Šç§'æŠ€æ¥)
Conglomerates (ç¶œåˆä¼æ¥)

Source of information

The classification of each stock is based on the information available to the public, for example the annual reports and company announcements.

Selection criteria for the HSI constituent stocks

source : seekingalpha.com

HSI constituent stocks are selected with the use of extensive analysis, together with external consultation. To be qualified for selection, a company:

must be among those that comprise top 90% of the total market value of all ordinary shares;
must be among those that comprise top 90% of the total turnover on the Stock Exchange of Hong Kong Limited "SEHK" (é¦™æ¸¯äº¤æ˜"æ‰€);
should have a listing history of 24 months or meet the requirements of the following Guidelines:

Guidelines for Handling Large-cap Stocks Listed for Less than 24 Months

For a newly listed large-cap stock, the minimum listing time required for inclusion in the stock universe for the HSI review is as follows:

Among the eligible candidates, final selections are based on their:

market capitalisation and turnover rankings;
representation of the respective sub-sectors within HSI; and
financial performance.

Calculation formula for HSI

source : www.scmp.com

The current Hang Seng Index is calculated from this formula:

${\textrm {Current~Index}}={\frac {\sum {\textrm {[}}{\textrm {P(t)}}\times {\textrm {IS}}\times {\textrm {FAF}}\times {\textrm {CF}}{\textrm {]}}}{\sum {\textrm {[}}{\textrm {P(t-1)}}\times {\textrm {IS}}\times {\textrm {FAF}}\times {\textrm {CF}}{\textrm {]}}}}\times {\textrm {Yesterday's~Closing~Index}}.$

Descriptions on parameters:

P(t)ï¼šCurrent Price at Day t
P(t-1)ï¼šClosing Price at Day (t-1)
ISï¼šIssued Shares (Only H-share portion is taken into calculation in case of H-share constituents.)
FAFï¼šFreefloat-adjusted Factor, which is between 0 and 1, adjusted quarterly
CFï¼šCap Factor, which is between 0 and 1, adjusted quarterly

Daily reports for HSI

source : www.drwealth.com

Investors in Asian markets monitor the following reports for investment activities:

Hang Seng Indexes Daily Bulletin
Hang Seng Index (HSI) Constituent Stocks Performance
Index Performance Summary
Total Return Index Series Daily Bulletin

Representativeness of the HSI

source : www.terraseeds.com

The representativeness of the HSI can be studied by the turnover of the whole stock market and by how much its market capitalisation covers. The aggregate market value of the HSI constituent stocks is maintained at approximately 60% of the total market value. This coverage ratio compares favorably with major overseas stock indices.

Other related Hang Seng stock indexes

source : www.alamy.com

Hang Seng China Enterprises Index (æ'ç"Ÿä¸åœ‹ä¼æ¥æŒ‡æ•¸)
Hang Seng China-Affiliated Corporations Index (æ'ç"Ÿé¦™æ¸¯ä¸è³‡ä¼æ¥æŒ‡æ•¸)
Hang Seng Freefloat Index Series
Hang Seng China H-Financials Index (æ'ç"Ÿä¸åœ‹Hè‚¡é‡'èžè¡Œæ¥æŒ‡æ•¸)
Hang Seng Mainland 100 (æ'ç"Ÿä¸åœ‹å…§åœ°100)
Hang Seng Mainland 25 (æ'ç"Ÿä¸åœ‹å…§åœ°25)
Hang Seng HK 35 (æ'ç"Ÿé¦™æ¸¯35)
Hang Seng REIT Index (æ'ç"Ÿæˆ¿åœ°ç"¢åŸºé‡'æŒ‡æ•¸)
Hang Seng Corporate Sustainability Index Series (æ'ç"Ÿå¯æŒçºŒç™¼å±•ä¼æ¥æŒ‡æ•¸ç³»åˆ—)
Hang Seng Composite Index (æ'ç"Ÿç¶œåˆæŒ‡æ•¸ç³»åˆ—)
Hang Seng Composite Industry Indexes (æ'ç"Ÿç¶œåˆè¡Œæ¥æŒ‡æ•¸)
Hang Seng Composite Size Indexes (æ'ç"Ÿç¶œåˆå¸‚å€¼æŒ‡æ•¸)
Hang Seng Short & Leveraged Index Series (æ'ç"ŸçŸå€‰åŠæ§"æ¡¿æŒ‡æ•¸ç³»åˆ—)
Hang Seng China A Industry Top Index (æ'ç"ŸAè‚¡è¡Œæ¥é¾é æŒ‡æ•¸)
Hang Seng China 50 Index (æ'ç"Ÿç¥žå·ž50æŒ‡æ•¸)
Hang Seng China AH Premium Index(æ'ç"ŸAHè‚¡æº¢åƒ¹æŒ‡æ•¸)
Hang Seng China AH Index Series (æ'ç"ŸAHæŒ‡æ•¸ç³»åˆ—)
Hang Seng Total Return Index Series (æ'ç"Ÿè‚¡æ¯ç´¯è¨ˆæŒ‡æ•¸ç³»åˆ—)
Hang Seng Dividend Point Index Series (è‚¡æ¯é»žæŒ‡æ•¸ç³»åˆ—)

References

External links

Bloomberg page for HSI:IND
Official website (in English) (in Chinese)
Reuters page for .HSI
Historical market capitalizations for companies part of Hang Seng index

Hang Seng Index - Hang Seng Market

Senin, 20 November 2017