Hang-Seng is a stock market index located in _______.

The correct answer is Hong Kong.

Key Points

• The Hang Seng Index (HSI) is the most recognized benchmark for the stock market performance in Hong Kong.
• It was established in 1969 and is maintained by the Hang Seng Indexes Company Limited, a wholly-owned subsidiary of Hang Seng Bank.
• The HSI includes the largest and most liquid companies listed on the Hong Kong Stock Exchange, representing around 60% of its total market capitalization.
• The index is composed of four sub-indices: Finance, Utilities, Properties, and Commerce & Industry, reflecting the diverse sectors of the Hong Kong economy.
• The HSI is a market capitalization-weighted index, meaning the stocks with higher market value have a larger impact on the index's performance.

Additional Information

• Hong Kong Stock Exchange (HKEX):
  • The Hong Kong Stock Exchange is one of the largest and most prominent stock exchanges in the world, based on market capitalization.
  • It was founded in 1891 and has since grown to become a key financial hub in Asia.
  • HKEX operates a securities market and a derivatives market in Hong Kong, offering a range of financial products, including stocks, bonds, and ETFs.
• Market Capitalization:
  • Market capitalization refers to the total market value of a company's outstanding shares of stock.
  • It is calculated by multiplying the current share price by the total number of outstanding shares.
  • This measure is used to determine a company's size and helps investors compare the relative size of companies.
• Index Weighting:
  • Index weighting is the method used to assign the relative importance of stocks in an index.
  • In market capitalization-weighted indices like the HSI, larger companies have more influence on the index's movements.
  • Other weighting methods include price weighting and equal weighting.
• Economic Significance:
  • The HSI is a key indicator of the economic and financial health of Hong Kong.
  • It is closely monitored by investors, analysts, and policymakers around the world.
  • Changes in the HSI can reflect broader economic trends and investor sentiment in the region.