Hang Seng IndexFinancial Dictionary -> Investing -> Hang Seng Index
Because of the ties between Honk Kong and its country China, many outside Chinese companies are also on the Hong Kong stock exchange and included in the Hang Seng Index, despite there being other large Asian exchanges.
The selection process is an extensive system of analysis and debate, but generally speaking for companies to have their stock listed they must be within the top 90% of companies based on the total market value of their ordinary shares, and the top 90% in terms of total turnover, as well as having to be validly listed on the Honk Kong Stock Exchange for 24 months to prove that their position is stable.
Stocks are divided in to several sectors and industries for accuracy and clarity. The sectors are Finance, Utilities, Properties and Commerce, with a more in depth list of specific industries, including Energy, Materials, Industrial Goods, Consumer Goods, Services, Telecommunications, Utilities, Financials, Properties & Construction, Information Technology, and conglomerates.
According to statistics the Hang Seng Index accounts for 65 to 70 percent of the market's total capitalization.
Companies listed on the Hang Seng include HSBC Holdings, Foxconn International, Esprit Holdings, and Henderson Land Development.