The Hang Seng Index is calculated by the weighted capital market value method and has 50 constituent stocks. These 50 constituent stocks belong to four sub-indices of industry and commerce, finance, real estate and public utilities respectively, and their total market value accounts for about 65% of the total market value of all listed stocks on the Hong Kong Stock Exchange.
Extended data
Characteristics of Hang Seng Index:
1, high cost performance.
Hang Seng Index futures and options contracts can provide more cost-effective investment opportunities. Investors only need to pay a deposit when buying and selling Hang Seng Index futures and options contracts, and the deposit only accounts for a part of the contract face value, which makes hedging activities more cost-effective.
2, the transaction cost is low.
Each Hang Seng Index futures option contract is equivalent to a basket of high-value stocks, and only one commission is charged for each transaction, so the transaction cost is lower than buying or selling constituent stocks.
3. Performance guarantee of the clearing company
Like other futures and options contracts traded in HKFE, Hang Seng Index futures and options contracts are now registered, settled and provided with performance guarantee by Hong Kong Futures Clearing Company Limited (HKSCC), which is wholly owned by HKFE.
As the clearing company is the counterparty of all open contracts, there will be no counterparty risk among clearing house participants. This ensures that the financial responsibility of clearing house participants to their customers will not be advanced. Therefore, investors should carefully and prudently choose brokers for trading.
Baidu encyclopedia-HSI futures