what is the hang seng index hsi 
the hang seng index or hsi is a free float market capitalization weighted index of the largest companies that trade on the hong kong exchange hkex hkex is one of the largest stock exchanges in the world with an aggregate market cap of more than 31 trillion as of december 2023 down 0 3 from november s 31 1 trillion 1the hsi is widely considered to be the benchmark equity market index for hong kong and often a barometer of asian markets more generally understanding the hang seng indexthe hsi is the most widely quoted indicator of the hong kong economy it s often used as a market benchmark for hong kong investors 2the index launched in 1969 its base period was july 31 1964 when it was valued at 100 hsi aims to reflect the leadership of the hong kong exchange and covers approximately 65 of its total market capitalization 3because of hong kong s status as a special administrative region of china there are close ties between the two economies and many chinese companies are listed on the hong kong exchange hsi is owned and managed by hang seng indexes company limited which is a wholly owned subsidiary of hang seng bank 4as of december 2023 the five largest constituents of the hang seng index were hsbc holdings alibaba tencent aia group and china construction bank 5the hang seng index structurethe hsi is a free float adjusted market capitalization weighted index its value is calculated and disseminated in real time at two second intervals during the trading hours of the hkex the hsi is classified as a price index without adjustments made for cash dividends or warrant bonuses the index targets the largest and most liquid stocks trading on hkex the number of constituents can vary from one period to another as of december 2023 there were 82 stocks in the index hsi companies also fall into one of four sub indexes finance utilities properties and commerce and industry to prevent any particular security from dominating the index the hsi has an 8 capping rule that s the maximum percentage of relative weighting that any single security may have 3a committee convenes quarterly to evaluate the index components and to decide if companies should be added or removed 67the hang seng hk 35 is an index of just the top 35 hong kong based companies that generate most of their revenues outside of mainland china 8the hang seng composite is an index of the top 95 of stocks trading on the hong kong exchange by market cap comprising around 500 stocks 9a subsidiary of the hang seng bank has maintained the hang seng index since 1969 4industries and componentsthe individual industries covered by the hsi along with their weights are 5top holdingsas of december 2023 the top 20 index holdings and their weightings were 5