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Hang Seng Composite Index Series
Hang Seng Freefloat Index Series
Hang Seng Composite Index Series
The Hang Seng Composite Index Series (“HSCI Series”) comprises the top 200
listed companies on the Hong Kong stock market. This series covers about
90% of the total market capitalisation of all stocks listed on the Main Board
of the Stock Exchange of Hong Kong (“SEHK”). It is divided into the
Geographical Indexes and Industry Indexes, and aims to provide a
comprehensive benchmark of the performance of stocks listed on the SEHK.
Hang Seng Composite Index Series
Hang Seng Composite Index
Industry Indexes
Hang Seng Hong Kong Composite Index
Energy
Hang Seng HK LargeCap Index
Materials
Hang Seng HK MidCap Index
Industrial Goods
Hang Seng HK SmallCap Index
Consumer Goods
Services
Hang Seng Mainland Composite Index
Hang Seng China-Affiliated
Corporations Index
Telecommunications
Geographical Indexes
Utilities
Financials
Properties & Construction
Information Technology
Conglomerates
Hang Seng Composite Index Series
Hang Seng Freefloat Index Series
Stock Universe
Companies with primary listings on the Main Board of the SEHK, including H shares, with the exception of the following
stocks:
1. Secondary listings on the Main Board of the SEHK
2. Listings on the Growth Enterprise Market
3. Preference shares, debt securities and other derivatives
Selection Criteria
Listing History Requirement
• No listing history is required. Following their IPO, stocks will be included in the Stock Universe for the next review if they
fulfill the requirements of the turnover screening, as set out below.
Turnover Screening
• A stock must not have had more than 20 trading days without turnover over the past 12 months, excluding days when the
stock is suspended from trading.
• Stocks with a listing history of less than one year will be counted on a pro-rata basis.
Removal from the HSCI
In the half-yearly reviews, constituents will be removed if:
• they fail to meet the requirements of the turnover screening; or
• their 12-month average market capitalisation ranking falls below 240th position
Addition to the HSCI
In the half-yearly reviews, companies will be included if:
• they fulfill the requirements of the turnover screening; and
• their 12-month average market capitalisation ranking rises above 160th position
Index Calculation
Full market capitalisation weighted methodology is adopted for all indexes in the HSCI Series.
Hang Seng Hong Kong Composite Index
Hang Seng Mainland Composite Index
The HSCI is subdivided into two Geographical Indexes: Hang Seng Mainland Composite Index (“HSMLCI”) and Hang Seng
Hong Kong Composite Index (“HSHKCI”).The two Geographical Indexes offer investors broad-based benchmarks for gauging
the different risk and return profiles of companies according to their principal place of business.
Selection Criteria
HSCI constituent companies with over 50% of their sales revenue (or profits, or assets if more appropriate) derived from
mainland China are included in the Hang Seng Mainland Composite Index. Companies not included in the HSMLCI, where
sales revenue is derived from Hong Kong and outside the mainland China are then included in the Hang Seng Hong Kong
Composite Index.
The geographical status of the constituents is reviewed based on publicly available information. To preserve the stability of the
index, once a company is included in the HSMLCI, it will remain there unless the proportion of its sales / profits / assets in
mainland China falls below 30% in that year, or falls below 40% in two consecutive years.
The number of constituents of the HSHKCI and HSMLCI varies according to the geographical status of the 200 HSCI constituents.
Hang Seng HK LargeCap Index
Hang Seng HK MidCap Index
Hang Seng HK SmallCap Index
The Hang Seng Hong Kong Composite Index (“HSHKCI”) is also divided into three sub-indexes based on the size of the
constituents.
Selection Criteria
The Hang Seng HK LargeCap Index (“HSHKLI”) covers about 80% of the market capitalisation of the HSHKCI with 15
constituent stocks. In regular reviews, any stock with a market capitalisation ranking that falls below 18th position in the
HSHKCI will be removed from the HSHKLI, while any stock ranking above 12th position will be included.
The Hang Seng HK MidCap Index (“HSHKMI”) comprises 35 constituent stocks and covers the next 15% of the market
capitalisation of the HSHKCI, following the top 80%. In regular reviews, any stock with a market capitalisation ranking that
falls below the 60th position in the HSHKCI will be removed from the HSHKMI, while any stock ranking above 40th position
will be included.
The Hang Seng HK SmallCap Index (“HSHKSI”) includes the remaining stocks of the HSHKCI which are not included in the
HSHKLI and HSHKMI. It covers the remaining 5% of the market capitalisation of the HSHKCI.
Hang Seng China-Affiliated Corporations Index
The Hang Seng China-Affiliated Corporations Index (“HSCCI”) was launched to provide a definition and benchmark for
investors interested in “Red Chips”, which are Mainland-controlled companies incorporated outside the mainland China and
listed in Hong Kong.
Selection Criteria
As a member of the HSCI Series, the HSCCI is comprised of constituents from the 200 HSCI constituent companies. To be
eligible as a HSCCI constituent, a minimum of 30% of shareholdings in a company should be held by Mainland entities. The
choice of a 30% strategic shareholding as the threshold aligns with “The Codes on Takeovers and Mergers” issued by the
Securities and Futures Commission. As part of the Hang Seng Mainland Composite Index, HSCCI constituents should have at
least 50% of their sales revenue (or profits, or assets if more relevant) derived from mainland China.
Hang Seng Composite Index – Industry Indexes
The 200-stock HSCI is divided into 11 Industry Indexes, reflecting the performance of different sectors of the Hong Kong stock
market. The Indexes are compiled by grouping the constituents of the HSCI under closest-fit industry category based on the
Hang Seng Industry Classification System. The primary parameter of stock classification is the revenue for each business area
of a company. Profit or assets will be taken into consideration where they can better reflect a company’s business.
The 11 industries are:
00 Energy (“ENE”)
30 Services (“SER”)
60 Properties & Construction (“P&C”)
05 Materials (“MAT”)
35 Telecommunications (“TEL”)
70 Information Technology (“IT”)
10 Industrial Goods (“IND”)
40 Utilities (“UTI”)
80 Conglomerates (“CGM”)
20 Consumer Goods (“CSG”)
50 Financials (“FIN”)
Hang Seng Freefloat Index Series
Comprised of the same 200 constituents as the Hang Seng Composite Index Series, the Hang Seng Freefloat Index Series
(“HSFI Series”) is aimed at meeting the demand for an alternative market benchmark that takes into account long-term
strategic holdings not readily available for trading in the market.
The HSFI Series includes six indexes, which are further grouped into two series - the Master Indexes and the Prime Indexes.
Hang Seng Freefloat Index Series
Hang Seng Freefloat
Composite Index
Hang Seng 50
Hang Seng HK Freefloat Index
Hang Seng HK 25
Hang Seng Mainland
Freefloat Index
Hang Seng Mainland 25
Master Indexes
Prime Indexes
Index Calculation
Freefloat-adjusted market capitalisation weighted methodology is adopted for all indexes in the HSFI Series.
The Master Indexes
Hang Seng Freefloat Composite Index (“HSFCI”)
Hang Seng HK Freefloat Index (“HSHKFI”)
Hang Seng Mainland Freefloat Index (“HSMLFI”)
The three Master Indexes have the same constituents as the Geographical Indexes of the Hang Seng Composite Index Series,
but adopt a freefloat-adjusted market capitalisation weighted methodology with a 15% capping on the weighting of
individual stocks.
The Prime Indexes
Hang Seng HK 25
The Hang Seng HK 25 (“HSHK25”) comprises the 25 largest listed companies in the Hong Kong market, in terms of
freefloat-adjusted market capitalisation, which derive the majority of their revenue from Hong Kong or outside mainland
China. As such, the HSHK25 acts as a comprehensive Hong Kong index to gauge the performance of Hong Kong large-cap
companies and reflect trends in the Hong Kong economy.
Hang Seng Mainland 25
The Hang Seng Mainland 25 (“HSML25”) comprises the 25 largest listed companies in the Hong Kong market, in terms of
freefloat-adjusted market capitalisation, which derive the majority of their revenue from mainland China. Both H shares and
red-chip companies are eligible for inclusion in the index. As such, the HKML25 acts as a comprehensive large-cap China
index to gauge the performance of China plays listed in Hong Kong.
Hang Seng 50
The Hang Seng 50 (“HS50”) comprises the top 50 companies in the Hong Kong market in terms of freefloat-adjusted market
capitalisation, with 25 companies from the HSHK25 and the HSML25 respectively.
Index Overview
Hang Seng Composite Index Series
HSCI
Launch Date
HSHKCI
HSHKLI
HSHKMI
HSHKSI
3 October 2001
Hang Seng
Composite
Index - Industry
Indexes
HSMLCI
HSCCI*
11 September 2006
3 October 2001
16 June 1997
3 January 2000
Backdated to
4 January 1993
Base Date
3 January 2000
Base Index
2,000
Review Frequency
Half-yearly
Vendor Codes
Bloomberg
HSCI
HSHKCI
HSHKLI
HSHKMI
HSHKSI
ENE :
MAT :
IND :
CSG :
SER :
TEL :
UTI :
FIN :
P&C :
IT
:
CGM :
HSCIEN
HSCIMT
HSCIIN
HSCICG
HSCISV
HSCITC
HSCIUT
HSCIFN
HSCIPC
HSCIIT
HSCICO
HSMLCI
HSCCI
Thomson Reuters
.HSCI
.HSHCI
.HSHLCI
.HSHMCI
.HSHSCI
ENE :
MAT :
IND :
CSG :
SER :
TEL :
UTI :
FIN :
P&C :
IT
:
CGM :
.HSCIE
.HSCIM
.HSCIIG
.HSCICG
.HSCIS
.HSCIT
.HSCIU
.HSCIF
.HSCIPC
.HSCIIT
.HSCIC
.HSMCI
.HSCC
* The HSCCI had a base index of 1,000 at its launch on 16 June 1997. On 3 October 2001 with the launch of the HSCI Series, the HSCCI was rebased with a value of 2,000 as at 3 January
2000 to align with the HSCI Series. A conversion factor of 1.53179 was used to convert the historical index value.
Hang Seng Freefloat Index Series
Launch Date
Master Indexes
HSFCI
HSHKFI
HSMLFI
Prime Indexes
HS50
HSHK25
HSML25
23 September 2002
20 January 2003
Backdated to
3 January 2000
Base Date
3 January 2000
Base Index
2,000
Review Frequency
Half-yearly
Vendor Codes
HSFCI
HSHFCI
HSMFCI
HSF50
HSFHK25
HSFML25
Thomson Reuters
.HSFCI
.HSHFCI
.HSMFCI
.HSF50
.HSFH25
.HSFM25
08/08-013 OA
Bloomberg
Disclaimer: The above information is for reference only and is subject to change from time to time. Please contact Hang Seng Indexes Company Limited for the most updated information.