Hang Seng Index (HSI) - Explained
What is the Hang Seng Index?
Written by J. Mance Gordon
Updated at April 22nd, 2024
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What is the Hang Seng Index?
The Hang Seng Index, abbreviated as HSI, is an index of the largest companies traded on the Hong Kong Exchange. The breakdown of the index is weighted based upon the market capitalization of the underlying companies. Each underlying company is sub-categorized into commerce and industry, utilities, finance, and properties. This allows for greater analysis of the index performance. The Hang Seng index includes approximately 65% of the total market capitalization of all companies traded on the index.
How Does the Hang Seng Index Work?
The Hang Seng Index is a subjectiary of the Hang Sange Bank. The index has come to represent the performance of the Hong Kong economy - very similar to the S&P and NASDAQ in the United States. Though many Chinese companies with close relationships with the Hong Kong territory are listed on the HSI.