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The Hong Kong Stock Exchange Hang Seng Index

The 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.

This also means that if the quoted price of larger firms move, much of the index is likely to follow. These 33 companies represent approximately 70 percent of the total market capitalization of the Hong Kong Stock Exchange.

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.

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The largest listed company on the Hong Kong Stock Exchange Hang Seng Index is HSBC Holdings plc which is actually over 30% of the value of the Hang Seng!

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.

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For more pages related to the Hong Kong Stock Exchange, please visit:

Hong Kong Stock Exchange

Hong Kong Stock Exchange History

Hong Kong Stock Exchange Information

Hong Kong Stock Exchange Latest News

Latest Hong Kong Stock Exchange Blog Posts

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