Relevant Indices of Hong Kong Stocks
The Hong Kong stock market has three prominent stock indices: the Hang Seng Index, the Hang Seng China Enterprises Index (H-share Index), and the Hang Seng TECH Index.
The Hang Seng Index is the most representative index in the Hong Kong stock market and the one investors pay the most attention to. Established by Hang Seng Bank in 1969 with a base period of July 31, 1964, the index is set at 100 points. As of May 12, 2022, the closing price of the index was 19,380 points, having risen nearly 200 times over 58 years, with a compound annual growth rate exceeding 10%.
Currently, the constituents of the Hang Seng Index include AIA Group, Tencent, HSBC, Alibaba, Meituan, and 61 other companies, with a total market value exceeding HKD 26 trillion, representing over half of the total market value of Hong Kong stocks.
The Hang Seng China Enterprises Index, also known as the H-share Index, aims to reflect the overall performance of Chinese mainland companies listed in Hong Kong. Established in 1994 and later changed its base date to January 3, 2000, the index is set at 2,000 points. As of May 12, 2022, the closing price of the index was 6,595 points, having increased approximately 2.3 times over 28 years, with a compound annual growth rate of around 5.8%.
The Hang Seng China Enterprises Index mainly includes 50 companies like Meituan, Alibaba, Tencent, China Construction Bank, ICBC, and Ping An Insurance, with a total market value of approximately HKD 16.6 trillion as of May 12, 2022.
The Hang Seng TECH Index was introduced in 2020. Since the Hong Kong Stock Exchange (HKEX) underwent significant reforms, including dual-class share structures, in 2018, it witnessed a surge in the listing of technology stocks. Seizing this opportunity, Hang Seng Indexes Company introduced the Hang Seng TECH Index, which has garnered considerable attention. Currently, its constituents mainly include the 30 largest technology companies listed, such as Meituan, Alibaba, JD.com, Tencent, Xiaomi, and Kuaishou.