The Hong Kong Stock Exchange's Hang Seng Index is made up of numerous internationally known public companies.
Unlike the competing Shanghai SSE Composite Index, its development is not influenced by political interventions.
The Hong Kong Stock Exchange is considered to be the most important in Asia alongside the Tokyo Stock Exchange - and the Hang Seng Index is its leading index with the most important stocks.
He is now over 50 years old.
On November 24, 1969, the Hang Seng Index was published for the first time, determined from the quotations of the most important stocks on the Hong Kong Stock Exchange.
At the same time, its calculation back to July 31, 1964 was announced: On this day the share index was quoted at its base value of 100 points.
The Hang Seng Index: The History of the Major Asian Stock Index
The information service HSI Service Limited has been calculating the Hang Seng Index, which reflects the development of the Hong Kong stock exchange, since the 1960s.
This service provider is a subsidiary of the local Hang Seng Bank.
This is represented with its shares in the index.
In addition, HSI Service Limited publishes other indices, including the following:
Hang Seng Volatility Index
HSI Composite Index
China Enterprises Index
In contrast to other well-known stock indices, such as the German DAX, the weighting of the values included in the Hang Seng Index was initially based solely on their market capitalization.
Only since 2006 has the Hang Seng weighted on the stocks that are in free float.
The Hang Seng Index: The Composition of Stocks
The Hang Seng Index is a pure price index.
This index includes 50 of the most important stocks that are traded on the Hong Kong Stock Exchange.
Their added value makes up more than half of the total market capitalization on this trading venue.
In principle, only stocks are included in the Hang Seng Index that have been on the Hong Kong Stock Exchange for at least 24 months.
Stocks of companies from the following industries make up a large part of the index:
Banks, insurance companies and other financial service providers
IT sector
Energy supplier
Consumer goods manufacturing
tourism
Real estate sector
Stocks from the financial sector account for a good half of the value of the Hang Seng Index.
The following joint stock companies, among others, are listed in detail:
AIA Group (Financial Services)
Tencent (internet services)
HSBC (financial services)
China Construction Bank (Financial Services)
Ping An Insurance (Financial Services)
Alibaba Group (Internet Services)
Sum Hung Kai Properties (Real Estate)
Henderson Land Development (real estate)
PetroChina (energy)
The Hang Seng Index: The Meaning
Alongside the Japanese Nikkei 225, the Hang Seng Index is considered to be the most important stock market barometer in Asia. Many of the stock corporations represented in it operate their business activities on all continents and have a great influence on the world economy. More and more of these companies come from mainland China, such as the Internet company Tencent. The Hang Seng Index reflects the development of these companies and, more importantly, the expectations that investors have with regard to the future sales and profits of these groups. For this reason, the Hang Seng Index is an important economic indicator. In addition, institutional and private investors are increasingly relying on passive funds that are linked to the Hang Seng Index. These Exchange Traded Funds (ETFs) offer the opportunity toto benefit broadly from the positive developments in the Chinese economy.
The Hang Seng Index: The price development since 1969
After its introduction in late 1969, the Hang Seng Index rose slowly but steadily.
After slumps, for example as a result of the global oil crisis in the 1970s, there was always rapid recovery.
In the first half of the 1980s, the share index made a permanent leap over the 1,000-point mark.
This was followed by strong growth.
Due to the new economy euphoria, the index was quoted at over 15,000 points at the turn of the millennium.
This was followed by a consolidation and a renewed increase.
During the global financial crisis in 2007/2008, however, the value halved.
Then it rose again and continues to climb new heights.
For several years now, the Hang Seng Index has maintained a level of well over 25,000 points.
