Basic rules of Hang Seng Index
(1) Select the total market value of all common shares that must be listed on the stock exchange according to the stock market value.
90% of listed stocks (market value refers to the average of the past 12 months). The constituent stocks of the Hang Seng Index are widely represented in the market, and their total market value accounts for about 90% of the total market value of the Hong Kong Stock Exchange. In order to further reflect the price trend of various stocks in the market, the Hang Seng Index began to publish four sub-indices on 1985, and the four sub-indices of industry and commerce, finance, real estate and public enterprises included 33 constituent stocks. The selection principles of the constituent stocks of the Hang Seng Index are as follows.
(2) According to the turnover, it must be among the listed stocks that account for 90% of the total turnover of ordinary shares listed on the stock exchange (turnover refers to the total turnover in the past 24 months).
(3) It must be listed on the stock exchange for more than 24 months.
After preliminary selection of qualified stocks according to the above criteria, sample stocks are finally selected according to the following criteria:
(1) ranking of company market value and turnover.
(2) The proportions of the four sub-indices of Hang Seng Index should roughly reflect the market situation.
(3) The company has a huge business in Hong Kong.
(4) The financial status of the company.