Hang Seng Index (HSI)

HSI PROFILE

  • The Hang Seng Index (HSI) is a benchmark for blue-chip stocks traded on the Hong Kong stock exchange.
  • The index is composed of four sub-sector indices in industry, finance, utilities, and real estate investment trusts.
  • The index uses a free-float market capitalization weighting scheme with a 10% cap on any one component’s index weight.

The Hang Seng Index or HSI is a free-float market capitalization-weighted index of the sixty largest companies that trade on the Hong Kong Exchange (HKEx). HKEx is among the largest stock exchanges in the world, with an aggregate market cap of more than $45 trillion as of 2021.1.

It is widely considered the benchmark equity market index for Hong Kong, and often a barometer of Asian markets more generally.

The Hang Seng is the most widely quoted barometer for the Hong Kong economy and is often used as a market benchmark for Hong Kong investors. Because of Hong Kong’s status as a special administrative region of China, there are close ties between the two economies, and many Chinese companies are listed on the Hong Kong Exchange.

The index aims to capture the leadership of the Hong Kong exchange and covers approximately 65% of its total market capitalization.

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