What is the Hang Seng index?

The Hang Seng Index is an index of the stock market that monitors stocks in Hong Kong. Although probably not about the character of the front indexs of stocks such as Dow Jones, FTSE and Nikkei, it is an important index recognized and followed around the world. This index celebrated its 40th anniversary in November 2009. It does not include all shares and instead takes into account approximately seventy percent In general, these supplies are not included those whose value changes at least, which means that they can be omitted without significantly affecting how representative the index is.

The index is weighed. This means that they are not just an average measured shares. Instead, different emphasis or weight is determined by different actions depending on their total market value. Changing the price of a large company shares is more likely to affect the index than the small business index. This is designed to stop drastic stock movements in a small business disproportionately affecting the index.

When weighing capitalization is carried out in the Hang Seng index, officials use a freely floating method to specify the results. This includes taking into account what share of each company's shares can be traded. The aim is to avoid too much weight of companies where most of the private ownership shares, such as leading companies are, and it is therefore unlikely to be traded regularly. Although such a company may have a large number of shares, changes in shares price may not be as significant on the market as for companies that have multiple shares that can actually be traded.

The Hang Seng index uses a system of 100 basic points. This means that the figure of the index was set to 100 points on the day it was first used. The image is then updated in the ratio to folders. This means that the index reached 200 points per day when the average stock value, taking into account weighing doubled since the index was launched.

Since 1985, the Hang Seng index has been divided into four categories. Like the overall index, separate figures are produced for shares related to financial, utility and assets with all other shares covered by the category of trade and industry. The picture for each category is known as a sub-index. The company that produces the Hang Seng index also produces a number of other indices, such as one focuses only on the largest companies.