Hang Seng Index 2022 | GlobalFinancialTrends

Hang Seng Index: Changes in Market Values Due to Free Float in Hong Kong!

Hang Seng Index: Changes in Market Values Due to Free Float in Hong Kong!

Hang Seng Index: Changes in Market Values Due to Free Float in Hong Kong!

The Hang Seng Index is a stock index that tracks stocks on the Hong Kong stock market. Dow Jones, FTSE, and Nikkei are the more popular and preferred indexes. However, the Hang Seng stock market is also an important index that is recognized and followed around the world.

The Hang Seng index, which has been in service since November 24, 1969, tracks daily changes in the stock prices of the 50 largest Hong Kong stock exchange companies. The company occupies nearly 60% of the shares of the Hong Kong Stock Exchange. Therefore, the Hang Seng Index is the leading indicator of the overall performance of the Hong Kong market. The Hang Seng Co., Ltd. is responsible for the preparation and maintenance of the Hang Seng Index.

Ho Sin Hang, chairman of Hang Seng Bank, hopes to create the Dow Jones Index for Hong Kong and develops the Hang Seng index. In 1985, they created four sub-indexes to make the index more readable. These 4 sub-index categories are as follows:

  • Hang Seng Finance Sub-Index
  • Utility Subdirectory
  • Features Subdirectory
  • Trade and Industry Sub-Index


How Did They Choose “Founder Shares”?


For a stock to be included in the Hang Seng index, it must first be thoroughly reviewed through external consultation. To be eligible for this analysis, companies must strictly meet certain requirements.

Must be one of the groups with the best 90% of the overall marketplace fee for all not unusual place stocks.

It Must be one of the groups that make up the pinnacle 90% of overall turnover at the Hong Kong Limited Stock Exchange.

Must have a list of records of at least 24 months or meet sure different necessities in the event that they were indexed for much less than 24 months.


H. Seng Index Annual Reporting


The H. Seng Index started in 1969, but they produced the reports from 1965. The base number is set at 100 points, which is the total value of the H. Seng index stocks at the close of trading on July 31, 1964.

On August 31, 1967, the Hang Seng Index value reached 58.61, the lowest level of values ​​up to that time. In December 1993, it moved to 10,000 points. It then passed 20,000 points in December 2006. In October 2007, the record score exceeded 30,000. The Hang Seng index’s all-time high was 33,223.58 on January 26, 2018. But as of December 2020, the Index has dropped to around 26,500 points.

Since 1965, the average annual change in the Hang Seng index is 19.2%. The highest annual return was brought to the company by the increase of 147.07% in 1972. The lowest annual return was brought to the company by the 60.54% drop in 1974.

For a long time since 2010, the annual average growth of the index was 3.7%. The highest return in the decade came in 2017, with an increase of 35.99%. The lowest return in the decade came in 2011, down 19.97%.

To follow the daily reports for the Hang Seng index, you can follow the Hang Seng Index’s Daily Bulletin, the Hang Seng Index (HSI) Founder’s Stock Performance, the Index Performance Summary, the Total Return Index Series Daily Bulletin platforms.


Performance of Hang Seng Index

Hang Seng price today is 27,687.96 USD with a volume of 0. At the same time, its chart fluctuates between 27,455.43 USD – 27,759.71 USD. Hang Seng index price was a maximum of 31,183.36 USD and a minimum of 23,124.25 USD within 52 weeks.  Its average volume is 2,158,289,929 and it has not yet made its mark on the Market Cap listing. The target point of Hang Seng index price at the end of 1 year is not clear yet.

The daily fluctuations of the index are not very large. Therefore, the overall risk is low. However, it is worth waiting for an increase in volume. Let’s see if Hang Seng will become much more popular in the coming period.