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Hang Seng Index Presentation and Analysis

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You have probably heard of the Hong Kong stock index, the Hang Seng. But did you know that it is also possible to speculate directly on the price of this one online, using a CFD trading platform? Of course, before embarking on such an adventure, you should obtain the necessary knowledge to carry out your analyses of this share by understanding its live price. We offer our help by explaining how to analyse this stock market index and its evolution on the stock market.  

Elements to consider before investing in this asset

Analysis N°1

As the Chinese market will have the most influence on this stock market index, the economic changes in this country will be followed with interest.

Analysis N°2

The end of the Yuan/Dollar parity, which would allow the Chinese currency to be pegged to a basket of currencies and no longer only to the US dollar, will also have a strong influence on this index.

Analysis N°3

In general, the value of the Yuan should be followed closely as it will also make China's imports and exports more or less advantageous and therefore influence its GDP. 

Analysis N°4

It will also be necessary to keep an eye on all major political events in the country. Indeed, even if they are not directly correlated with this stock market index, they can influence its general dynamics. This concerns not only Chinese political events but also international events.

Analysis N°5

China's international relations should also be closely monitored, as disputes or conflicts with certain other major world economies can lead to trade problems and thus cause the price of certain Chinese stocks and consequently the price of this index to fall.

Analysis N°6

Finally, it will of course also be necessary to follow the stock market evolution of the largest capitalisations in this stock market index, as the calculation of the Hang Seng price varies essentially according to these data and not according to supply and demand. The news and results of these groups are elements to be followed.

Hang Seng Index Presentation and Analysis
Trade on the Hang Seng stock!
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Trade on the Hang Seng stock!

A recap on the Hang Seng 50 index:

First, let's take a few moments to review what the Hang Seng 50 Index is and what it stands for. The Hang Seng 50 Index is, as the name suggests, a stock market index that includes the 50 largest companies listed on the Hong Kong Stock Exchange. Of course, this stock index also serves as a benchmark for assessing the economic health of Hong Kong. In fact, the companies that are part of its composition represent more than 60% of the total market capitalization of this financial centre.

It was in 1969 that the Hang Seng Index was created. It is still managed by the Hang Seng Bank which is none other than one of the most important banks in Hong Kong and is in charge of the management of indices and economic data of the Hong Kong markets. In view of the close ties between Hong Kong and China, the Hang Seng Index is also considered a good indicator of the performance of Chinese companies. Many of these companies are found within it.

In the world of trading and the stock market, the Hang Seng index can take several names. We know it under the name of Hang Seng 50, but also HangSeng50 hangSeng Index, HK50, HSI50 and HSI.

 

What are the times and periods to speculate on the Hang Seng?

Another question you should ask yourself as a potential Hang Seng investor is the trading hours of this stock index. As is the case with the other Asian indices, the Hang Seng index presents specific trading hours which are broken down into three time slots valid each day, from Monday to Friday. Here are the hours during which it's possible to invest in this stock market value:

 

Which companies make up the Hang Seng index?

To end this article about the Hang Seng stock market index, check out the composition of this index in more detail. As its name suggests, the Hang Seng is made up of 50 stocks, i.e. the 50 largest companies listed on the Hong Kong Stock Exchange, of which you'll find the detailed list below dated October 12th 2020:

Of course, the list that we have just revealed to you is liable to change over time as companies enter and leave the composition of this benchmark index. Bear in mind however, that the vast majority of the shares of these companies are accessible from the online trading platforms of CFD brokers as they are part of the largest companies in China and Hong Kong.

Frequently Asked Questions

What is the correlation between the Hang Seng index and other stock exchanges?

There is a correlation between the Hong Kong Hang Seng 50 stock index and other international stock indexes. The annual performances of the Hang Seng index have come closer to the performances of the Dow Jones, the DAX 30, the CAC 40 or the FTSE 100 over time. This is due to the fact that the major stock markets are more and more dependent on each other and have been so for about fifteen years now.

How to analyse the price of the Hang Seng index?

To analyse the price of the Hang Seng index and make forecasts on its more or less long-term evolution, you should take into account both fundamental analysis data as well as the news and performances of the large companies it consists of as well as data from the technical analysis of this stock.

What is the Hang Seng Company which is not to be confused with this index?

While speculating on the Asian stock market, you may have already come across a company also named Hang Seng which you should not confuse with this index. It is one of the largest banking groups in Hong Kong, which is additionally in charge of managing this index and which is also one of the companies included in its composition.

Trade on the Hang Seng stock!

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