Hang Seng Index definition

The Hang Seng Index is Hong Kong's benchmark stock index, tracking a selection of major companies listed on the Hong Kong Stock Exchange and weighted by free-float market capitalisation. It is the main gauge of the Hong Kong equity market.

The index groups its constituents across sectors such as finance, property, and commerce and industry, and it includes both Hong Kong companies and large mainland Chinese firms listed in the city. Weights are float-adjusted and capped so that no single member can dominate the index.

Moves in the Hang Seng often reflect sentiment towards the Chinese economy, and it is sometimes confused with related benchmarks such as the Hang Seng China Enterprises Index, which focuses on mainland companies. You can take exposure through an index CFD, which tracks the index level without owning the underlying shares.

Hang Seng Index Example

You expect Hong Kong stocks to recover, so you go long an index CFD that tracks the Hang Seng Index. Say the index is at 18,000.

The index rises to 18,270, a gain of 270 points. Your profit is the 270 points multiplied by the value per point of your contract.