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What is HSI (Hang Seng Index)?
5 Answers
<p>The Hang Seng Index or HSI is a market capitalization-weighted index of the largest companies that trade on the Hong Kong Exchange.</p>
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<p>The HSI is a freefloat-adjusted market capitalisation weightedindex with a cap on the weighting of individual constituent securities. 1.5 The HSI iscalculated and disseminated real-time at 2-second intervals during the trading hours of the stock exchange of Hong Kong (“HKEX”).</p>
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<p>The Hang Seng Index (HSI) is a benchmark for blue-chip stocks traded on the Hong Kong stock exchange. The index is composed of four sub-sector indices in industry, finance, utilities, and real estate investment trusts. The index uses a free-float market capitalization weighting scheme with a 10% cap on any one component's index weight.</p>
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<p>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. Because of Hong Kong's status as a special administrative region of China, there are close ties between the two economies, and many Chinese companies are listed on the Hong Kong Exchange. The index aims to capture the leadership of the Hong Kong exchange and covers approximately 65% of its total market capitalization.</p>
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<p id="isPasted">The HSI is classified as a price index without adjustments made for cash dividends or warrant bonuses.</p><p>An 8% capping is applied to avoid any single stock domination of the index. The index targets 60 stocks, but the exact number of constituents can vary slightly at any given time. As of April 2022, there were, in fact, 66 stocks in the index. A committee convenes quarterly to evaluate the index components and decide if companies should be added or removed.</p>