Hang Seng Sub-indexes are barometer of the Hong Kong stock market. The constituent stocks are grouped under Finance, Utilities, Properties and Commerce and Industry sub-indexes.

Stock Universe
Only companies with a primary listing on the Main Board of the Stock Exchange of Hong Kong (HKEX) are eligible as constituents. Mainland enterprises that have an H-share listing in Hong Kong will be eligible for inclusion in the Hang Seng Index (HSI) when they meet any one of the following conditions:

(1) The H-share company has 100% of its ordinary share capital in the form of H-shares which are listed on the Stock Exchange of Hong Kong;
(2) The H-share company has completed the process of Share Reform, with the result that there is no unlisted share capital in the company; or
(3) For new H-share IPOs, the company has no unlisted share capital.

Selection Criteria
Constituent stocks of the HSI are selected by a rigorous process of detailed analysis, supported by extensive external consultation. To be eligible for selection, a company:

must be among those companies that constitute the top 90% of the total market value of all eligible shares listed on the HKEX (market value is expressed as an average of the past 12 months);

must be among those companies that constitute the top 90% of the total turnover of all eligible shares listed on the HKEX (turnover is aggregated and individually assessed for eight quarterly sub-periods over the past 24 months); or

should normally have a listing history of at least 24 months or meet the requirements of the following Guidelines:

From the many eligible candidates, final selections are based on the following:

• the market value and turnover ranking of the companies;
• the representation of the sub-sectors within the HSI directly reflecting that of the market; and
• the financial performance of the companies.

Policy on Removing Suspended Constituent
A constituent of the Hang Seng Family of Indexes will be removed from the relevant index if it has been suspended from trading for one month. Such a stock may be retained in the Index only in exceptional circumstances if it is believed that it is highly likely that the stock will resume trading in the near future.