The Hong Kong Stock Exchange Hang Seng IndexThe Hong Kong Stock Exchange Hang Seng Index is a capitalization-weighted index of 33 companies. This means that the largest firms listed carry the greatest weight.
The classification of each stock is based on the information available to the public, for examples the annual reports and company announcements. HSI constituent stocks are selected with the use of extensive analysis, together with external consultation. The index is maintained by a subsidiary of Hang Seng Bank. The components of the Hang Seng Index are divided into four subindexes: Commerce and Industry, Finance, Utilities, and Properties. The index was developed with a base level of 100 on 31st July 1964.
The high number of banking, finance and property companies listed - including many of the largest firms - means that the Hang Seng Index is very much weighted towards these sectors. This can prove problematic for investors to obtain sufficient diversification either by investing in the index or directly into individual companies. The Hang Seng Composite Index Series was launched on 3rd October 2001. It is targeting on providing a broad standard of the performance of the Hong Kong stock exchange. Comprising the top 200 listed companies in terms of market capitalisation, it's value accounts for about 97% of the total capitalization of the stocks in Hong Kong. Would you like to improve your knowledge and skills by watching a free movie online? If you would, then
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