What Is Heng Seng Index?
The Hang Seng Index (HSI) is a benchmark stock market index that tracks the performance of the 50 largest and most liquid companies listed on the Hong Kong Stock Exchange (HKEX). It was first introduced on November 24, 1969, and is one of the most widely recognized indices in Asia.
The companies included in the Hang Seng Index represent a diverse range of industries. This includes financials, technology, real estate, consumer goods, and more. The index serves as a barometer of the overall performance of the Hong Kong stock market. It is closely watched by investors and traders as an indicator of market sentiment and economic health in the region.
The HSI is calculated using a free-float market capitalization-weighted methodology. This means that the index's components are weighted based on their market capitalization and the number of freely tradable shares available in the market. This methodology ensures that larger and more actively traded companies have a greater influence on the index's movements. Click here to find out the formula for calculating the Hang Seng Index.
As a widely followed and influential index, the Hang Seng Index plays a significant role in attracting both domestic and international investments to the Hong Kong stock market. It also serves as a basis for various financial products. This includes futures and options contracts, allowing investors to hedge their portfolios or speculate on the future direction of the Hong Kong stock market.
This article aims to provide updates about the Hang Seng Index.
Trading Hang Seng Index Futures and Options
Orient Futures Singapore offers Hang Seng Index Futures and Options from Hong Kong Exchanges & Clearing Limited (HKEX) for traders.
Apart from Hang Seng Index, Orient Futures Singapore also offers access to trade other indices that track different segments of the stock market. This includes the Hang Seng China Enterprises Index (which tracks mainland Chinese companies in HK) or Hang Seng TECH index (which tracks the performance of technology companies listed in Hong Kong).
Separately, for traders that are seeking exposure and lower risks, Hong Kong Exchange offers a Mini Hang-Seng Futures as well. The mini futures are one fifth the size of the HSI futures and a one hundred per cent margin offset between the Mini-HSI and HSI futures.
Here are all Hang Seng Index Futures and Options that Orient Futures Singapore offer under HKEX:
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Figure 1. Popular Hang Seng Index Futures and Options
Hang Seng Index Futures Contract Specifications
The Hang Seng Index futures has the following contract specifications:
The Hang Seng Index Futures Contract has a minimum price fluctuation of one index point with a contract multiplier of HK$50 per index point.
The last trading day of the contract month is the second last trading day of the contract month.
Contract months for Short-Dated Futures, spot, are on the next three calendar month and next three-quarter months. For the Long-Dated Futures are for the three months of June and December plus the next three months of December.
Trading Hours are from Monday to Friday, at these trading hours:
9:15 am – 12:00 noon / 1:00 pm – 4:30 pm / 5:15pm – 3:00am
Hang Seng Index Futures Symbol: HSI
Hang Seng Index Standard Options Symbol: HIS
Hang Seng Index Flexible Options Symbol: XHS
The final settlement price shall be the average of (i) five-minute intervals from five minutes after the start of, and up to five minutes before the end of, the continuous trading session of SEHK; and (ii) the close of trading on SEHK on the Last Trading Day.
Hang Seng Index News and Market Updates
Figure 2. Hang Seng Index Performance Chart from Business Times
According to the Business Times, the Hang Seng Index (HSI) has been trading in a downtrend. It has been experiencing a decline of more than 15 percent since its peak in January this year.
The weakening economic data from China has raised concerns about the country's economic recovery. This contributed to the index's losses. Following the release of weak economic data earlier this month, the Caixin Services Purchasing Managers' Index (PMI) fell short of the consensus at 53.9, well below May's reading of 57.1.
This June print was the second-worst reading for the index this year. Additionally, data from the previous week indicated deflationary pressure in China, with the Producer Price Index (PPI) sinking 5.4 percent year on year for a ninth consecutive month. This marks the fastest pace in over seven years.
Hang Seng Index Today
According to Market Watch, as of 22 August 2023, the Hang Seng Index was trading at the 17,791.01-point level.
Business Times also reported that on the weekly timeframe, the 20-day moving average has continued to act as resistance for the HSI since breaking down in March of the same year.
The index is expected to potentially move towards the 17,600-point level. This aligns with the downtrend channel support and the 61.8 percent Fibonacci retracement level. The retracement level is calculated from the October 2022 swing lows at 14,597 points and January 2023 swing highs at 22,700 points.
Moreover, the HSI Volatility Index, which measures the 30-calendar-day expected volatility of the index, recently broke out of a mid-term downtrend resistance, indicating the possibility of further volatility in the near-term.
Start Trading With Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us.
We provide premium customer service at an affordable cost to all our clients. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
