The Hang Seng Composite Index is a stock market index of
the Stock Exchange of Hong Kong
The Stock Exchange of Hong Kong (SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is repo ...
and was launched in 2001. It offers an equivalent of Hong Kong market benchmark that covers around the top 95th percentile of the total market capitalisation of companies listed on the Main Board of the Stock Exchange of Hong Kong (“SEHK”). Its index calculation adopts the freefloat-adjusted
market capitalisation
Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.
Market capitalization is equal to the market price per common share multiplied by ...
methodology, and can be used as a basis for
index funds
An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that the fund can a specified basket of underlying investments.Reasonable Investor(s), Boston University Law Review, avail ...
,
mutual funds
A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV ...
as well as performance benchmarks. Its arguable that the composite index is a better reflection on the overall market performance than the more popular Hang Seng Index, which only cover 50 stocks as opposed to over 480 stocks in the composite index.
Just how accurate a picture of the Hong Kong stock market does the Hang Seng Index really give us?, SCMP 2017-02-15, Retrieved 2018-05-30
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Sub-index
The Hang Seng Composite Index can be further dividend into 2 group of indexes : 1 on industry sector and 1 on market capitalisation.
Industry sector index series
There are 11 sub-indexes per industry sector:
*Energy
*Materials
*Industrial Goods
*Consumer Goods
*Consumer Services
*Telecommunications
*Utilities
*Financials
*Properties & Construction
*Information Technology
*Conglomerates
Market capitalisation index series
There are 3 indexes on market capitalisation :LargeCap, MidCap and SmallCap Indexes, which cover the top 80%, the next 15% and the remaining 5% respectively of the total market capitalisation of the Hang Seng Composite Index.
*Hang Seng Hong Kong LargeCap Index
*Hang Seng Hong Kong MidCap Index
*Hang Seng Hong Kong SmallCap Index
See also
*Hang Seng Index
The Hang Seng Index (HSI) 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 market and is the main indicator ...
References
External links
*
Official website of Hang Seng Composite Index
Hang Seng Bank stock market indices
Hong Kong stock market indices
Hang Seng Index
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