Hang Seng Index (HSI)

The Hang Seng Index (HSI) is a Stock market Index that represents the performance of the largest and most liquid companies listed on the Hong Kong Stock Exchange. It is a Market Capitalization-weighted Index, meaning that companies with larger market values have a greater impact on the Index’s movements. The HSI includes 50 constituent Stocks from various sectors, such as finance, utilities, and technology, providing a broad snapshot of the Hong Kong Stock market’s overall performance.

For example, if the HSI rises from 25,000 to 26,000 points, it indicates that the overall market has increased, reflecting positive sentiment among investors. Conversely, if the Index falls to 24,000 points, it suggests a decline in market performance. The HSI is often used by investors and analysts to gauge market trends and make investment decisions.

One notable case is during the 2008 financial crisis when the HSI experienced significant volatility, dropping sharply from over 31,000 points in October 2007 to around 10,000 points in March 2009. This highlighted the Index’s sensitivity to global economic conditions and investor sentiment.