What Is the Cling Seng Index (HSI)?
The Cling Seng Index or HSI is a free-float market capitalization-weighted index of the sixty largest companies that trade on the Hong Kong Industry (HKEx). HKEx is without doubt one of the largest stock exchanges on this planet, with an aggregate market cap of more than $38 trillion as of 2022.
It is widely regarded as the benchmark equity market index for Hong Kong, and steadily a barometer of Asian markets additional maximum frequently.
Key Takeaways
- The Cling Seng Index (HSI) is a benchmark for blue-chip stocks traded on the Hong Kong stock alternate.
- The index is composed of four sub-sector indices in industry, finance, utilities, and authentic assets investment trusts.
- The index uses a free-float market capitalization weighting scheme with a 10% cap on someone section’s index weight.
Figuring out the Cling Seng Index
The Cling Seng is largely essentially the most widely quoted barometer for the Hong Kong financial device and is steadily used as a market benchmark for Hong Kong buyers. As a result of Hong Kong’s status as a singular administrative house of China, there are close ties between the two economies, and plenty of Chinese language language companies are listed on the Hong Kong Industry.
The index targets to clutch the control of the Hong Kong alternate and covers kind of 65% of its total market capitalization.
How the Cling Seng Index Is Structured
The HSI is a free-float-adjusted market capitalization-weighted index that is calculated and disseminated in real-time at two-second intervals right through the purchasing and promoting hours of the Hong Kong stock alternate (HKEx). The HSI is classified as a price index without adjustments made for cash dividends or warrant bonuses.
An 8% capping is performed to avoid any single stock domination of the index. The index targets 60 stocks, then again the true number of constituents can vary rather at any given time. As of April 2022, there were, if truth be told, 66 stocks throughout the index. A committee convenes quarterly to evaluate the index parts and make a decision if companies should be added or removed.
A very powerful constituents of the Cling Seng Index include Tencent, Alibaba, Industry and Industry Monetary establishment of China, Meituan, and the China Construction Monetary establishment.
Cling Seng folks moreover fall into one amongst 4 sub-indexes, in conjunction with industry and industry, finance, utilities, and houses.
The Cling Seng HK 35 is a sub-index of merely the best possible 35 Hong-Kong based totally companies that also generate most of their revenues out of doors of mainland China. The Cling Seng Composite is an index of the best possible 95% of stocks purchasing and promoting on the Hong Kong alternate by the use of market cap, comprising spherical 500 stocks.
A subsidiary of the Cling Seng Monetary establishment maintains the Cling Seng Index and has performed so since 1969.
Cling Seng Components
The best possible thirty holdings throughout the Cling Seng Index as of April 2022 have been (in no specific order):
- China Mengniu Dairy Company Limited
- CITIC Limited
- Techtronic Industries Company Limited
- Industry and Industry Monetary establishment of China Limited
- China Petroleum & Chemical Corporate
- New Global Development Company Limited
- CLP Holdings Limited
- The Hong Kong and China Gas Company Limited
- CSPC Pharmaceutical Staff Limited
- Galaxy Recreational Staff Limited
- Hengan Global Staff Company Limited
- Henderson Land Development Company Limited
- China Assets Land Limited
- CK Infrastructure Holdings Limited
- ENN Energy Holdings Limited
- China Lifestyles Insurance plans Company Limited
- ANTA Sports activities actions Products Limited
- CNOOC Limited
- Nongfu Spring Co., Ltd.
- Li Ning Company Limited
- Lenovo Staff Limited
- Cling Lung Properties Limited
- Country Garden Services and products Holdings Company Limited
- Xiaomi Corporate
- AAC Technologies Holdings Inc.
- WuXi Biologics (Cayman) Inc.
- Alibaba Neatly being Knowledge Era Limited
- Meituan
- JD.com, Inc.
- Alibaba Staff Protective Limited
How Many Stocks Are throughout the Cling Seng Index?
The Cling Seng Index (HSI) is composed of the 60 largest stocks traded on the Hong Kong Stock Industry, even if at any given time, there could also be rather kind of than 60. The Hong Kong Industry, for reference, has the stocks of spherical 2,500 companies listed.
How Do You Invest Inside the Cling Seng Index?
If you don’t are living in Hong Kong, you’ll be able to nevertheless spend money on the HSI by the use of Hong Kong ETFs such for the reason that iShares MSCI Hong Kong ETF (EWH) and the Franklin FTSE Hong Kong ETF (FLHK). The KraneShares Hong Kong Tech ETF (KTEC) tracks 30 high-tech stocks throughout the Cling Seng Composite.
What Is the Largest Stock Market in Asia?
Japan’s stock alternate is the most important equity market in Asia, and second place belongs to the Shanghai Stock Industry in mainland China. The Honk Kong Industry is to be had in third, followed by the use of China’s Shenzen Industry.
