Hang Seng Index 267177 225579720 2008-07-14T12:02:37Z Ricky@36 732883 {{Redirect6|Hang Seng|the bank with the same name|Hang Seng Bank|all other uses}} The '''Hang Seng Index''' (abbreviated: '''HSI''', Chinese: {{linktext|恒|生|指|數}}) 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 Exchange|Hong Kong stock market]] and is the main indicator of the overall market performance in Hong Kong. These 40 companies represent about 65% of capitalization of the Hong Kong Stock Exchange. HSI was started on [[November 24]], [[1969]], and is currently compiled and maintained by ''HSI Services Limited'', which is a wholly owned subsidiary of [[Hang Seng Bank]], the largest bank 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 AH Index Series'', ''Hang Seng China Enterprises Index'', ''Hang Seng China H-Financials Index'', ''Hang Seng Composite Index Series'', ''Hang Seng Freefloat Index Series'' and ''Hang Seng Total Return Index Series''. ==Statistics== 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 highs, set on [[October 30]], [[2007]], are 31,958.41 points during trading and 31,638.22 points at closing. From [[October 30]], [[2007]] thru [[March 9]], [[2008]], the index lost 9,426 points or approximately 30% of its value wiping out hundreds of billions of investor wealth. ==Components== 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 43 HSI constituent stocks in total. As of [[June 10]], [[2008]], they are: '''Hang Seng Finance Sub-index''' *0005 [[HSBC Holdings plc]] *0011 [[Hang Seng Bank Ltd]] *0023 [[Bank of East Asia|Bank of East Asia, Ltd]] *0388 [[Hong Kong Exchanges and Clearing|HKEx Limited]] *0939 [[China Construction Bank]] *1398 [[Industrial and Commercial Bank of China]] *2318 [[Ping An Insurance]] *2388 [[Bank of China (Hong Kong)|BOC Hong Kong (Holdings) Ltd]] *2628 [[China Life Insurance Company|China Life]] *3328 [[Bank of Communications|Bank of Communications Ltd]] *3988 [[Bank of China|Bank of China Ltd]] '''Hang Seng Utilities Sub-index''' *0002 [[CLP Holdings|CLP Holdings Ltd]] *0003 [[Hong Kong and China Gas Company Limited]] *0006 [[Hongkong Electric|Hong Kong Electric Holdings Ltd]] '''Hang Seng Properties Sub-index''' *0001 [[Cheung Kong (Holdings) Ltd]] *0012 [[Henderson Land Development Co. Ltd]] *0016 [[Sun Hung Kai|Sun Hung Kai Properties Ltd]] *0083 [[Sino Group|Sino Land Co Ltd]] *0101 [[Hang Lung Properties Ltd]] *0688 [[China Overseas Land & Investment Limited]] '''Hang Seng Commerce & Industry Sub-index''' *0004 [[The Wharf (Holdings) Limited|Wharf (Holdings) Ltd]] *0013 [[Hutchison Whampoa Ltd]] *0017 [[New World Development Co. Ltd.]] *0019 [[Swire Group|Swire Pacific Ltd 'A']] *0066 [[MTR Corporation|MTR Corporation Ltd]] *0144 [[China Merchants Holdings|China Merchants Holdings (International) Co Ltd]] *0267 [[CITIC Pacific Ltd]] *0291 [[China Resources|China Resources Enterprise, Ltd]] *0293 [[Cathay Pacific Airways Ltd]] *0330 [[Esprit Holdings Ltd]] *0386 [[Sinopec|Sinopec Corp]] *0494 [[Li & Fung|Li & Fung Ltd]] *0551 [[Yue Yuen Industrial (Holdings) Ltd]] *0700 [[Tencent Holdings Limited]] ''(effective [[June 10]], [[2008]])''<ref name="effective20080610">{{cite press release |url=http://main.hsi.com.hk/hsicom/announce/20080509e.pdf |title=Hang Seng Indexes Announces Index Review Results |publisher=Hang Seng Indexes |format=PDF |date=2008-05-09 |accessdate=2008-05-09 }}</ref> *0762 [[China Unicom|China Unicom Ltd]] *0857 [[PetroChina|PetroChina Company Limited]] *0883 [[CNOOC|CNOOC Ltd]] *0906 [[China Netcom|China Netcom Group Corporation Ltd]] *0941 [[China Mobile|China Mobile Ltd]] *1088 [[China Shenhua|China Shenhua Energy Company Limited]] *1199 [[COSCO|COSCO Pacific Ltd]] *2038 [[Foxconn|Foxconn International Holdings Ltd]] *2600 [[Aluminum Corporation of China Limited]] (Chalco) ''(effective [[June 10]], [[2008]])''<ref name="effective20080610"/> ''Removed, effective [[June 10]], [[2008]]:''<ref name="effective20080610"/> * 0008 [[PCCW]] * 1038 [[Cheung Kong Infrastructure Holdings Ltd]] (CKI Holdings) In the future, the number of constituent stocks will be increased to 50 in order to reflect the changes in the Hong Kong stock market and to maintain the index as the most representative market benchmark. The '''[[Hang Seng Composite Index Series]]''' (恒生綜合指數) was launched on October 3, 2001, targeting on providing a broad standard of the performance of the Hong Kong stock market. Comprising the top 200 listed companies in terms of market capitalisation, it is composed of the geographical series and the industry series. The market capitalization of these companies accounts for about 97% of the total capitalization of the stocks in Hong Kong. To ensure fairness in its activities, the HSI Services established the Independent Advisory Committee to give advice on issues pertaining to the indexes. The Committee keeps reviewing the constituent stocks of HSI on a quarterly basis. Usual changes are expected. ==Hang Seng Industry Classification System== '''Hang Seng Industry Classification System''' (formerly called Hang Seng Stock Classification System) is a comprehensive system designed for the Hong Kong stock market by HSI Services 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 systems. '''General classification guidelines:''' i) The '''sales revenue''' arising from each business area of a company is the primary parameter of stock classification, and the [[net profit]] will also be taken into consideration to determine whether that company's business runs well. ii) A company will be classified into different '''sectors''' according to its majority source of sales revenue. 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 (能源業) * Materials (源材料業) * Industrial Goods (工業製品業) * Consumer Goods (消費品製造業) * Services (服務業) * Telecommunications (電訊業) * Utilities (公共事業) * Financials (金融業) * Properties & Construction (地產建築業) * Information Technology (資訊科技業) * Conglomerates (綜合企業) '''Source of information''' The classification of each stock is based on the information available to the public, for examples the annual reports and company announcements. ==Selection criteria for the HSI constituent stocks== 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" (香港交易所); * 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:'' {| class="wikitable" |- ! Average MV Rank at Time of Review ! Minimum Listing History |- | Top 5 | 3 Months |- | 6-15 | 3 Months |- | 16-20 | 12 Months |- | 21-25 | 18 Months |- | Below 25 | 24 Months |} 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== The current Hang Seng Index is calculated from this formula: <math> \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}.</math> Descriptions on parameters: *P(t):Current Price at Day t *P(t-1):Closing Price at Day (t-1) *IS:Issued Shares *FAF:Freefloat-adjusted Factor, which is between 0 and 1, adjusted every six months *CF:Cap Factor, which is between 0 and 1, adjusted every six months ==Daily reports for HSI== 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== 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 70% of the total market value. This coverage ratio is a positive sign when compared with major overseas stock indices. ==Other related Hang Seng stock indexes== *Hang Seng China AH Index Series (恒生AH指數系列) *Hang Seng China Enterprises Index (恒生中國企業指數) *Hang Seng China H-Financials Index (恒生中國H股金融行業指數) *[[Hang Seng Composite Index Series]] (恒生綜合指數系列) *[[Hang Seng Freefloat Index]] Series (恒指流通指數系列) *Hang Seng Total Return Index Series (恒生股息累計指數系列) *[[Hang Seng Composite Industry Indexes]] (恒生綜合行業指數) ==References== {{reflist}} ==External links== *[http://www.hsi.com.hk/ Hang Seng Indexes Company Limited (formerly HSI Services Ltd.)] - Company website *[http://main.hsi.com.hk/hsicom/constituent/con_hsi.xls Constituent stocks of the HSI] - Link to the websites of constituent companies of HSI *[http://main.hsi.com.hk/hsicom/constituent/hist_hsi.xls Changes in the constituent stocks of the HSI] *[http://www.hkex.com.hk HKEx] - Hong Kong Exchanges and Clearing Limited (HKEx) *[http://www.info.gov.hk/hkma/ HKMA] - Hong Kong Monetary Authority *[http://www.info.gov.hk/fsb/ FSB] - Financial Services Bureau *[http://www.quamnet.com/marketslist.action?showIndice=HSI Hang Seng Index Constituents - delayed quotes] - List and quote for constituents of Hang Seng Index *[http://www.quamnet.com Information and quotes on companies listed in Hong Kong] - Hong Kong company information and stock quotes *[http://finance.yahoo.com/q?s=%5EHSI&d=t Quotes of Hang Seng Index] - Quotes of Hang Seng Index *[http://hkstock.selfip.com/ Realtime HK stock quotes] - Realtime HK stock quotes *[http://www.taprofessional.de/charts/Hang-Seng-Index-Point-and-Figure-Chart.htm Hongkong: Hang Seng Index] - Hongkong: Hang Seng Index [[Category:Stock market indices]] [[Category:Hang Seng Index]] [[Category:Hang Seng Index Constituent Stocks| ]] [[Category:Warrants issued in Hong Kong Stock Exchange]] [[de:Hang Seng Index]] [[es:Hang Seng Index]] [[fr:Hang Seng]] [[id:Indeks Hang Seng]] [[nl:Hang Seng]] [[ja:香港ハンセン株価指数]] [[pl:Hang Seng Index]] [[pt:Hang Seng Index]] [[zh-yue:恒生指數]] [[zh:恒生指數]]