Trade the Hang Seng 50 (HS50) — Hong Kong’s Premier Equity Benchmark

The Hang Seng 50 is an index that tracks the 50 largest companies on the Hong Kong Stock Exchange, and is compiled and sustained by a subsidiary of Hang Seng Bank in Hong Kong, the Hang Seng Indexes Company.

The Hang Seng 50 can be composed of securities from all sectors, and the Hang Seng 50 is separate from other related indices such as the Hang Seng China Index, which is composed of the top securities from all Chinese stock markets.

The Hang Seng 30 was launched on November 24, 1969, after the chairman of the Hang Seng Bank came up with the idea of creating the Dow Jones Index for Hong Kong. The Hang Seng’s initial base points of 100 represented the value of all included stock at the time of launch. As a testament to the growth of China since the 70’s until today, the index currently sits at over 26,000 points.

The milestone of 10,000 points was first reached in 1993, with 20,000 points being surpassed in 2006. The all time high value of the Hang Seng 30 was 33,223.58 points on January 26, 2018. The index’s all time low was 58.61 points on August 31, 1967, although this was retroactively calculated.

The Hang Seng 50 is composed of 4 sub-indexes: Hang Seng Finance Sub-Index, Hang Seng Utilities Sub-Index, Hang Seng Properties Sub-Index and the Hang Seng Commerce and Industry Sub-Index. These sub-indexes are themselves composed of some of the largest global companies and institutions including HSBC, AIA Group Ltd., Tencent Holdings Ltd., China Unicom Ltd., Swire Group and Wharf Real Estate Investment Company Ltd.

The Hong Kong Stock Exchange is one of the largest and most well-known stock exchanges in the world, and the Hang Seng 50 represents one of the world’s biggest growth markets. The Chinese economy has boomed throughout the past 4 decades, and Hong Kong has been a global financial power throughout that period.

Many of the world’s leading financial institutions are included in the Hang Seng 50, and its performance can provide important indications as to the health of the Chinese market, as well as the health of global financial markets as a whole.

The Hang Seng 50 is a free float-adjusted, market-capitalization-weighted index. What this means is that the index value is first calculated by multiplying the total value of their outstanding shares by each of the securities’ last sale prices, and then weighting that in relation to the size of each of the other securities in the index.

Following this, a float factor is designated to each security to account for the amount of total shares that are publicly held, as opposed to being held by those within the company or a government body.

The Hang Seng 50 is a stock index rather than a single company stock which means that the growth of the index is pushed along by 50 major companies. For traders, this means the risk is mitigated as one company’s poor performance won’t impact the index too much, and when there is a growth in macroeconomic factors, most of the top companies will benefit together.

Remedy TradeXPro’s ultra-fast order execution and its stable, reliable trading engine ensures the tightest spreads and best trading experience. The trading platform is packed with advanced trading tools, such as long and short positions, advanced order types such as stop loss and take profit orders.

The platform is also safe, secure, and offers 24/7 customer support service via a live chat, community channels, and much more.

Investing in the Chinese stock market is tough for anyone outside of the mainland. However, there are ways to access the China stock market, known as the Hang Seng 50 Index, using CFDs.

Trading the Hang Seng 50 is possible using CFDs on an advanced trading platform such as Remedy TradeXPro. Remedy TradeXPro offers the Hang Seng 50 alongside the Dow Jones, S&P 500, FTSE, and several other global stock indices.

The best time to trade the Hang Seng is when the Chinese stock market opens, closes, and volatility is the highest. However, any day trading Monday through Friday, there are plenty of profitable trading opportunities.

The Hang Seng 50 trades under the HSI ticker symbol. On Remedy TradeXPro, it trades as a CFD using the Hong Kong 50 ticker.