Interesting facts about the HK50 (Hong Kong 50 Index)
The Stock Exchange of Hong Kong index HK50 is free-floating and weighted by capitalization. Companies with a higher market capitalization receive a higher weighting in the index. To calculate the market cap of a certain company, it’s needed to multiply its outstanding shares by the current stock price.
It is believed that the banker, Stanley Kwan, was the author of the index. HK50 is considered a time-tested indicator of the dynamics of Asian capital. The stocks included in the index provide over 58% of the stock exchange’s capitalization. HK50 serves as an indicator that reflects the overall state of the Chinese stock market.
The HK50 index is highly liquid. The liquidity of shares of companies included in the index has the strongest impact on the index fluctuations. If it is below a certain limit, the financial regulator of Hong Kong may suspend trading. Before trading Hang Seng, it is necessary to conduct a fundamental analysis.
The stock index is sensitive to the economic and political situations in China, Japan, South Korea, Singapore, Australia, and the US. The ups and downs in the euro do not affect the HK50. Hang Seng assets experience significant influence from the British financial conglomerate HSBC, as well as the US VIX index.
The base value of the index of 100 points was fixed on July 31, 1964. Since then, the index has grown by more than 22,000%. The HK50 index reached an all-time high of 33,484.08 in January 2018.
The Hong Kong government sees 2022 as another year of growth, although the situation demands keeping a finger on the pulse because of various uncertainties.
