A recap on the Hang Seng 50 index:
First, let's take a few moments to review what the Hang Seng 50 Index is and what it stands for. The Hang Seng 50 Index is, as the name suggests, a stock market index that includes the 50 largest companies listed on the Hong Kong Stock Exchange. Of course, this stock index also serves as a benchmark for assessing the economic health of Hong Kong. In fact, the companies that are part of its composition represent more than 60% of the total market capitalization of this financial centre.
It was in 1969 that the Hang Seng Index was created. It is still managed by the Hang Seng Bank which is none other than one of the most important banks in Hong Kong and is in charge of the management of indices and economic data of the Hong Kong markets. In view of the close ties between Hong Kong and China, the Hang Seng Index is also considered a good indicator of the performance of Chinese companies. Many of these companies are found within it.
In the world of trading and the stock market, the Hang Seng index can take several names. We know it under the name of Hang Seng 50, but also HangSeng50 hangSeng Index, HK50, HSI50 and HSI.
What are the times and periods to speculate on the Hang Seng?
Another question you should ask yourself as a potential Hang Seng investor is the trading hours of this stock index. As is the case with the other Asian indices, the Hang Seng index presents specific trading hours which are broken down into three time slots valid each day, from Monday to Friday. Here are the hours during which it's possible to invest in this stock market value:
- The first time slot for speculating on the Hang Seng is between 4:15 a.m. and 7 a.m. The market then takes a one hour break and reopens at 8 a.m. until 11:30 a.m. Another one hour break comes next, followed by a continuous quotation from 12:15 p.m. to 7:59 p.m., every working day of the week. The hourly ranges of this index make it a value that will be suitable for early morning traders and particularly offers the possibility to invest before the opening of other markets including the European stock markets. Overall the best times to trade Hang Seng are in the morning between 4:15 a.m. and 7 a.m., i.e. before the European openings, in the afternoon between 3 p.m. and 7 p.m. when the American markets open and, of course, when important economic announcements are made by China or Hong Kong. The time slot relevant to the opening of the stock market, between 4:15 a.m. and 7 a.m., is often popular with investors because there is often a peak in volatility. However, it's important to master the strategies of scalping or day trading to benefit from them. This rise in volatility is largely due to the fact that traders fall back on this financial centre as the Nikkei 225 trading session comes to an end.
- Regarding the second time slot, in the afternoon, it coincides with the opening of the American markets with, again, a rather strong volatility before a trend is set up. This is due to the fact that a lot of American investors invest in Asian markets.
- Finally, if you prefer to trade in a low volatility market, you can do so between 8 a.m. and 11:30 a.m. It is in fact during this time slot that consolidation movements happen due to a lack of volume since investors favour the opening of European futures markets at 8 a.m. and spot market at 9h.
Which companies make up the Hang Seng index?
To end this article about the Hang Seng stock market index, check out the composition of this index in more detail. As its name suggests, the Hang Seng is made up of 50 stocks, i.e. the 50 largest companies listed on the Hong Kong Stock Exchange, of which you'll find the detailed list below dated October 12th 2020:
- Hang Lng Properties ltd
- CK Infrastructur Holding ltd
- Hengan International Group Co ltd
- China Shenhua Energy Co ltd
- CSPC Pharmaceutical Group ltd
- China Resources Land ltd
- CK Asset Holdings ltd
- Sino Biopharmaceutical ltd
- Hang Seng Bank ltd
- The company AIA Group ltd
- Henderson Land Developpment Co ltd
- Industrial & Commercial Bank of China ltd
- Want Want China Holding
- Sun Hung Kai Properties ltd
- Geely Automobile Holdings ltd
- New World Development Co ltd
- Sands China ltd
- Wharf Real Estate Investment Co ltd
- Swire Pacific ltd
- CK Hutchiston Holdings ltd
- Country Gardent Holdings Co ltd
- AAC Technologies Holdings Inc
- Shenzhou International Group Holding ltd
- Ping An Insurance Group Co of China ltd
- China Mengui Dairy Co ltd
- Sunny Optical Technology Group Co ltd
- BOC Hong Kong Holdings ltd
- China Life Insurance Co ltd
- CITIC ltd
- Galaxy Entertainment Group ltd
- AIA Group ltd
- CLP Holdings ltd
- Bank of Communications Co ltd
- China Petroleum & Chemical Corp
- Hong Kong Exchanges & Clearing ltd
- Bank of China ltd
- Hong Kong & China Gas Co ltd
- HSBC Holdings PLC
- Techtronic Industries col td
- MTR Corp ltd
- China Overseas Land & Investment ltd
- Power Asset Holdings ltd
- Tencent Goldings ltd
- China Unicom Hong Kong ltd
- The Link REIT company
- Sino Land Co ltd
- Petrochina Co ltd
- CNOOC ltd
- China Construction Bank Corp
- And China Mobile ltd
Of course, the list that we have just revealed to you is liable to change over time as companies enter and leave the composition of this benchmark index. Bear in mind however, that the vast majority of the shares of these companies are accessible from the online trading platforms of CFD brokers as they are part of the largest companies in China and Hong Kong.