What is the Hang Seng Index (HSI)?

The Hang Seng Index (HSI) is a stock market index in Hong Kong. It records and monitors the daily changes in stock prices of the 50 largest Hong Kong stock market companies. As the companies represent almost 60% of the Hong Kong Stock Exchange, the Hang Seng Index is the main indicator of the Hong Kong market’s overall performance.

Is there a Hang Seng Index ETF?

The Hang Seng Index underlies many exchange-traded funds (ETFs), and you can also access it through American depository receipts (ADRs). As no Hang Seng ETFs are traded in the U.S., one alternative is iShares MSCI Hong Kong Index Fund ETF (EWH).

How does the Hong Kong index work?

The index uses a free-float market capitalization weighting scheme with a 10% cap on any one component's index weight. 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.

Who are the members of Hang Seng Index?

The largest constituents of the Hang Seng Index include Tencent, Alibaba, Industrial and Commercial Bank of China, Meituan, and the China Construction Bank. Hang Seng members also fall into one of four sub-indexes, including commerce and industry, finance, utilities, and properties.