Hang Seng Index (HSI)

Search Dictionary

Definition of 'Hang Seng Index (HSI)'

The Hang Seng Index (HSI) is a stock market index of the top 50 companies listed on the Hong Kong Stock Exchange (HKEX). It is the most widely followed stock market index in Hong Kong and is often used as a barometer of the health of the Hong Kong economy.

The HSI was created in 1969 and is calculated using a free-float market capitalization weighted methodology. This means that the index is weighted according to the market capitalization of each constituent company, with larger companies having a greater influence on the index than smaller companies.

The HSI is a price-weighted index, which means that the index value is calculated by adding up the prices of all the constituent companies and dividing by a divisor. The divisor is adjusted periodically to reflect changes in the index composition and to maintain the index's historical continuity.

The HSI is a real-time index, which means that it is calculated and updated continuously throughout the trading day. The index is published by the Hang Seng Indexes Company Limited (HSICL).

The HSI is a widely used benchmark for the Hong Kong stock market. It is also used as a reference point for investment decisions and as a measure of the performance of the Hong Kong economy.

The HSI has been a strong performer over the long term. Since its inception in 1969, the index has grown by an average of 10.5% per year. However, the index has also experienced periods of volatility, such as the Asian financial crisis of 1997-1998 and the global financial crisis of 2008-2009.

The HSI is a valuable tool for investors and traders who want to track the performance of the Hong Kong stock market. It is also a useful tool for economists and policymakers who want to monitor the health of the Hong Kong economy.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.