Also known as: 恒生指數 · HSI Index (Bloomberg) · .HSI (RIC)
At a glance
Review frequencyQuarterly
Constituent count100
Next datesNo upcoming dates derived yet.
Profile fields by outline item
Field
Value
Source text
Reading (model)
M1 Identity, objective, classification · 8 fields
Sub indexes
Finance, Utilities, Properties, Commerce and Industry
There are four sub-indexes: Finance, Utilities, Properties, and Commerce and Industry.Open p.4 ↗
The index has four sub-indexes: Finance, Utilities, Properties, and Commerce and Industry.
Sub index assignment rule
Constituents are assigned to one sub-index based on HSICS industry classification and the published mapping table.
Constituents will be assigned to one of the sub-indexes based on the industry classification of the HSICS and the following mapping table:Open p.4 ↗
Each constituent is assigned to one sub-index based on its HSICS industry classification and the mapping table.
Administrator
Hang Seng Indexes Co Ltd
This methodology document should be read in conjunction with the Index Methodology General Guide on Hang Seng Indexes Co Ltd (“HSIL”)’s website.Open p.1 ↗
Hang Seng Indexes Co Ltd is the index provider.
Index family
Hang Seng Composite LargeCap & MidCap Index family
Universe: Constituents of the Hang Seng Composite LargeCap & MidCap Index as of index review data cut-off date; excluding secondarylisted Foreign CompaniesOpen p.1 ↗
The index is based on constituents of the Hang Seng Composite LargeCap & MidCap Index.
Objective
To serve as a benchmark to reflect the overall performance of the Hong Kong stock market.
Objective: To serve as a benchmark to reflect the overall performance of the Hong Kong stock market.Open p.1 ↗
The index serves as a benchmark reflecting the overall performance of the Hong Kong stock market.
Intended use
Benchmark
Objective: To serve as a benchmark to reflect the overall performance of the Hong Kong stock market.Open p.1 ↗
The index is intended to serve as a benchmark.
Market classification
Hk connect
Objective: To serve as a benchmark to reflect the overall performance of the Hong Kong stock market.Open p.1 ↗
The index covers the Hong Kong stock market.
Size segment
Custom
Constituents of the Hang Seng Composite LargeCap & MidCap Index as of index review data cut-off dateOpen p.1 ↗
The index draws on large-cap and mid-cap constituents rather than a single standard size segment.
M2 Universe · 5 fields
Universe data cutoff
As of the index review data cut-off date
Constituents of the Hang Seng Composite LargeCap & MidCap Index as of index review data cut-off date; excluding secondarylisted Foreign CompaniesOpen p.1 ↗
The universe is determined using constituents as of the index review data cut-off date.
Markets
Hong Kong
Objective: To serve as a benchmark to reflect the overall performance of the Hong Kong stock market.Open p.1 ↗
The universe covers securities in the Hong Kong stock market.
Security types
Foreign listing, Stapled, Other
excluding secondarylisted Foreign Companies, Stapled Securities, Biotech Companies with stock names end with marker “B” and Specialist Technology Companies with stock names end with marker “P”.Open p.1 ↗
The universe text identifies foreign companies, stapled securities, biotech companies marked B, and specialist technology companies marked P as relevant security categories.
Parent universe index
Hang Seng Composite LargeCap & MidCap Index
Universe: Constituents of the Hang Seng Composite LargeCap & MidCap Index as of index review data cut-off date; excluding secondarylisted Foreign CompaniesOpen p.1 ↗
The universe consists of constituents of the Hang Seng Composite LargeCap & MidCap Index as of the review data cut-off date.
Exclusions
Secondary-listed foreign companies, Stapled securities, Biotech companies with stock names ending with marker B, Specialist technology companies with stock names ending with marker P
excluding secondarylisted Foreign Companies, Stapled Securities, Biotech Companies with stock names end with marker “B” and Specialist Technology Companies with stock names end with marker “P”.Open p.1 ↗
Secondary-listed foreign companies, stapled securities, B-marker biotech companies, and P-marker specialist technology companies are excluded.
M3 Eligibility screens · 4 fields
Index review meeting counting date
Listing history is counted up to the index review meeting date.
Requirements: Listing History At least 3 months Requirements: (counting up to the index review meeting date)Open p.1 ↗
The three-month listing-history period is counted up to the index review meeting date.
Trading history
Minimum value: 3 months
Requirements: Listing History At least 3 months Requirements: (counting up to the index review meeting date)Open p.1 ↗
A security must have a listing history of at least three months, counted up to the index review meeting date.
Turnover Velocity Test for Tradable Indexes Requirements: (minimum velocity of 0.1% on monthly basis, details please refer to the Index Methodology General Guide)Open p.1 ↗
Tradable indexes require a minimum turnover velocity of 0.1% on a monthly basis, with details in the Index Methodology General Guide.
Minimum size
Metric: Rank; Threshold: Membership in the Hang Seng Composite LargeCap & MidCap Index
Market Value Hang Seng Composite LargeCap & MidCap Index constituents Requirements: Listing History At least 3 monthsOpen p.1 ↗
The market-value requirement is satisfied by being a constituent of the Hang Seng Composite LargeCap & MidCap Index.
M4 Selection and constituent count · 9 fields
Industry group assignment rule
Candidates are assigned to one HSICS Industry Group, including Financials, Information Technology, Consumer Discretionary, Consumer Staples, Properties & Construction, Telecommunications, Utilities, Healthcare, Energy, Materials, Industrials, and Conglomerates.
Eligible candidates will be assigned to one of the below Industry Groups according to their industry classification of the Hang Seng Industry Classification System (“HSICS”):Open p.2 ↗
Eligible candidates are assigned to one of the specified HSICS Industry Groups.
Industry group mix review frequency
at least every two years
The combination of the Industry Groups will be reviewed at least every two years.Open p.2 ↗
The combination of Industry Groups is reviewed at least every two years.
Hong Kong company minimum count
20
The index will also maintain at least 20 constituents that are classified as “Hong Kong” Companies and this number will be reviewed at least every two years.Open p.2 ↗
The index maintains at least 20 constituents classified as Hong Kong Companies.
Existing constituent removal considerations
Smallest constituents and constituents with the lowest liquidity within an Industry Group may be removed if suitable replacements are available.
Existing constituents failing to meet the eligibility requirements may be considered for removal. Even if existing constituents fulfil all the eligibility requirements, the smallest constituents and the constituents with lowest liquidity within the Industry Group may be considered for removal from the HSI subject to the availability of appropriate replacement candidates.Open p.3 ↗
Existing constituents may be removed for failing eligibility or, even if eligible, if they are among the smallest or least liquid in their Industry Group and suitable replacements exist.
Review addition deletion discretion
Each review may or may not add or delete constituents.
In each review, there may or may not be constituent additions or deletions.Open p.3 ↗
A periodic review does not guarantee constituent additions or deletions.
Selection method
Committee
The final constituent selection will be decided by the HSI Advisory Committee after taking the above into consideration.Open p.3 ↗
Constituents are selected by the HSI Advisory Committee after considering representativeness, market capitalisation, turnover, financial performance and sectoral balance.
In general, eligible securities will be evaluated within each Industry Group according to the following considerations:
Representativeness; Market capitalisation; Turnover; and Financial performance, including profitability.Open p.3 ↗
Eligible securities are evaluated within each Industry Group using representativeness, market capitalisation, turnover, and financial performance including profitability.
Target constituent count
100
Fixed at 100 (in the progress of expansion).Open p.3 ↗
The number of constituents is fixed at 100, with expansion in progress.
Industry neutrality rule
Eligible candidates are assigned to HSICS Industry Groups; each group targets at least 50% market-capitalisation coverage, and cross-industry constituent changes may restore sectoral balance.
Target to cover at least 50%, in terms of market capitalisation, for each Industry Group; Characteristics of the Industry Group which include the distribution of the listed companies in terms of their size and number;Open p.2 ↗
Selection is conducted by HSICS Industry Group, targeting at least 50% market-capitalisation coverage per group and allowing cross-group changes to restore sectoral balance.
M6 Review and rebalance schedule · 5 fields
Review frequency
Quarterly
Review Quarterly (Data cut-off end-March / June / September / Frequency: December)Open p.5 ↗
The index is reviewed quarterly.
Review types
Quarterly review
Review Quarterly (Data cut-off end-March / June / September / Frequency: December)Open p.5 ↗
The stated review type is a quarterly review.
Review months
March, June, September, December
Review Quarterly (Data cut-off end-March / June / September / Frequency: December)Open p.5 ↗
Quarterly review data cut-offs occur at the end of March, June, September, and December.
Data cutoff rule
Data cut-off at the end of March, June, September, and December.
Review Quarterly (Data cut-off end-March / June / September / Frequency: December)Open p.5 ↗
The quarterly review uses data cut-offs at the end of March, June, September, and December.
M8 Corporate actions, IPOs, ad-hoc changes · 1 field
Corporate actions guide ref
Index Methodology General Guide
For more information on the terms used in this document and calculation details, please refer to the Index Methodology General Guide on HSIL’s website.Open p.5 ↗
Terms and calculation details, including corporate-action related calculation details, are covered in the Index Methodology General Guide on HSIL's website.
Open points · 22Model-written, for reference
1The supplied sections do not state the official index name, short name, local-language name, index code, ISIN, or third-party vendor tickers.
2The supplied sections do not state launch date, base date, base value, calculation currency, methodology version, or methodology date.
3The supplied sections do not identify a separate calculation agent or specify the benchmark regulatory status.
4The supplied sections do not state the index family type or factor exposures.
5The supplied sections do not specify exchanges or listing boards beyond the Hong Kong stock market context.
6The supplied sections do not state a company nationality assignment rule.
7The supplied sections do not provide numeric minimum market capitalisation, minimum free float, foreign room, voting rights, minimum price, financial screens, ESG exclusions, suspension treatment, or an extreme-price screen.
8The liquidity rule refers to the Index Methodology General Guide for detailed turnover velocity mechanics, which is not included.
9No explicit tie-break rule is stated for candidates with equal ranking metrics.
10No reserve list or pre-ranked replacement candidate pool is described.
11No weighting scheme, free-float factor, share count source, capping rule, or divisor adjustment rule is stated in the selection and constituent count section.
12Announcement timing and publication method for review results were not stated.
13Effective date rule for quarterly review changes was not stated.
14Weight reset frequency for capping or factor weights was not separately stated.
15Rank buffer, size-segment buffer, liquidity buffer for existing constituents, and maximum turnover per review were not stated.
16Fast-entry rule for large new listings was not stated.
17Ad hoc deletion triggers, replacement policy, merger and spin-off treatment, deletion price, and share or free-float change thresholds were not stated.
18The separate Index Methodology General Guide was referenced, but its corporate-action rules were not included.
19Not coveredM5 Weighting and capping: not covered by this edition
20Not coveredM7 Buffers and turnover control: not covered by this edition
21Not coveredM9 Calculation and return variants: not covered by this edition
22Not coveredM10 Governance, change policy, disclosure: not covered by this edition
Read by a language model (doubao-seed-2.1-pro) on 2026-10-03 · prompt 1.2 · schema 1 · 32 of 32 quotes found word for word in the PDF
This profile was written by a language model from the provider's text and may be wrong; the provider's document prevails.
v2.3-2024.05.28 → v2.3-2025.03.24· earlier stepLatest step ↗·0 changes:● 0 major ● 0 minor · 0 editorial
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m:M3 an outline item (M1–M10)
kind:addedkind:removedkind:movedkind:modified
p:81 or p:80-90 a page or pages
"exact phrase" words in this order
-word leave out changes with this word
Grades
●Major: a rule changed in the review schedule, buffers, corporate actions or calculation (M6–M9)
●Minor: a rule changed in identity, universe, eligibility, selection or weighting (M1–M5), or a governance change to notice periods or consultation (M10)
●Editorial: no rule changed: wording, layout, numbering, or other governance text (M10)
v2.3-2023.11.20 → v2.3-2025.03.246 changes:● 0 major ● 2 minor · 4 editorial
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is:majoris:minoris:editorial one grade
m:M3 an outline item (M1–M10)
kind:addedkind:removedkind:movedkind:modified
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"exact phrase" words in this order
-word leave out changes with this word
Grades
●Major: a rule changed in the review schedule, buffers, corporate actions or calculation (M6–M9)
●Minor: a rule changed in identity, universe, eligibility, selection or weighting (M1–M5), or a governance change to notice periods or consultation (M10)
●Editorial: no rule changed: wording, layout, numbering, or other governance text (M10)
● minor · modified
The HSI universe exclusion for Specialist Technology Companies changes the required stock-name marker from “PC” to “P”. This alters the eligibility screen for securities classified as Specialist Technology Companies.Rated minor: The changed rule is the index universe/eligibility exclusion marker for Specialist Technology Companies: “PC” becomes “P”. Because this changes the stated condition identifying excluded securities, it is substantive and falls within M1-M5, which caps materiality at minor. No explicit effective date is stated in the text.Model-written, for reference only.Open p.1 ↗
● minor · modified
The updated section adds the HSICS industry-group mapping and explicit rules for setting constituent counts by industry group, including a target of at least 50% market-cap coverage per group, industry characteristics and index-versus-market weighting considerations, and a minimum of 20 constituents classified as “Hong Kong” Companies. It also requires reviews of the industry-group combination and Hong Kong constituent minimum at least every two years.Rated minor: The change adds substantive selection/allocation criteria and a minimum constituent requirement tied to industry classification and Hong Kong Company status, affecting which securities or groups users expect in the index. These are M4 selection-related rules, so the ceiling is minor; no explicit effective date is stated.Model-written, for reference only.Open p.2 ↗
● editorial · removed
Editorial change: wording only, no rule changed.Open old p.2 ↗
● editorial · modified
The vendor-code table adds WIND as a data vendor and lists WIND codes for the Price Index (.HSI -> HSI.HI), Gross Total Return Index (.HSIDV/HSIRH -> HSIRH.HI), and Net Total Return Index (.HSIDVN/HSINH -> HSINH.HI). Review/rebalancing frequency, weighting, capping, dates, currency, and dissemination frequency are unchanged.Rated editorial: The only substantive-looking change is addition of a third-party vendor and its ticker symbols; this is disclosure/market-data identifier information, not a change to index review schedule, eligibility, selection, weighting, calculation, or corporate-action rules. No effective date is stated.Model-written, for reference only.Open p.5 ↗
● editorial · modified
The amendment-history entry for version 2.3 is reformatted by inserting the heading “Amendment History” and moving “Date Description” onto a separate line. No index methodology rule, date, threshold, or historical amendment description is changed.Rated editorial: The only change is layout/text wrapping in the Amendment History: a repeated heading is inserted and “Date Description” is placed on another line. It does not add, remove, or modify an operative index rule, so under M10 disclosure/history formatting this is an editorial.Model-written, for reference only.Open p.6 ↗
● editorial · moved
The disclaimer was rewritten and expanded. It retains the reference-only, no-warranty, no-liability, and change-without-notice language, but replaces generic professional-advice guidance with investment-risk language, advice against relying solely on the document, independent investment-advice recommendations, and a new disclosure concerning HSBC Group conflicts of interest and related safeguards.Rated editorial: No index methodology rule, eligibility criterion, selection process, weighting formula, review schedule, corporate-action treatment, or calculation procedure changed. The update concerns legal disclaimer and conflicts-of-interest disclosure, which falls under governance/disclosure and does not add notice periods or consultation obligations; the page move is also non-substantive.Model-written, for reference only.Open p.8 ↗
othermodifiedFront matter
--- Front matter (2023-12-01_286fb8c0)
+++ Front matter (2026-10-02_ddf3b341)
@@ -1,4 +1,4 @@
This methodology document should be read in conjunction with the Index Methodology General Guide on Hang Seng Indexes Co Ltd (“HSIL”)’s website.
Readers are reminded that there might be exceptions in the index handling to the below general approach in some special situations and HSIL reserves the right to determine the most appropriate handling.
Objective: To serve as a benchmark to reflect the overall performance of the Hong Kong stock market.
-Universe: Constituents of the Hang Seng Composite LargeCap & MidCap Index as of index review data cut-off date; excluding secondarylisted Foreign Companies, Stapled Securities, Biotech Companies with stock names end with marker “B” and Specialist Technology Companies with stock names end with marker “PC”.
+Universe: Constituents of the Hang Seng Composite LargeCap & MidCap Index as of index review data cut-off date; excluding secondarylisted Foreign Companies, Stapled Securities, Biotech Companies with stock names end with marker “B” and Specialist Technology Companies with stock names end with marker “P”.
2 unchanged sections
M3Eligibility Criteria
M4Constituent Selection
M4modifiedSelection by Industry Groupsimilarity 27%
--- Selection by Industry Group (2023-12-01_286fb8c0)
+++ Selection by Industry Group (2026-10-02_ddf3b341)
@@ -1 +1,6 @@
Eligible candidates will be assigned to one of the below Industry Groups according to their industry classification of the Hang Seng Industry Classification System (“HSICS”):
+HSICS Industry Group Code Industry 1 50 Financials 2 70 Information Technology 23 Consumer Discretionary 3 25 Consumer Staples 4 60 Properties & Construction 35 Telecommunications 5 40 Utilities 6 28 Healthcare 00 Energy 05 Materials 7 10 Industrials 80 Conglomerates
+The combination of the Industry Groups will be reviewed at least every two years.
+Considerations for Deciding the Constituent Number for Each Industry Group The number of constituents in each Industry Group will be decided by the below principles:
+Target to cover at least 50%, in terms of market capitalisation, for each Industry Group; Characteristics of the Industry Group which include the distribution of the listed companies in terms of their size and number; and The Industry Group weighting in the index compared to the market.
+The index will also maintain at least 20 constituents that are classified as “Hong Kong” Companies and this number will be reviewed at least every two years.
M4removedHSICS
--- HSICS (2023-12-01_286fb8c0)
+++ /dev/null
@@ -1,4 +0,0 @@
-Industry Group Code Industry 1 50 Financials 2 70 Information Technology 23 Consumer Discretionary 3 25 Consumer Staples 4 60 Properties & Construction 35 Telecommunications 5 40 Utilities 6 28 Healthcare 00 Energy 05 Materials 7 10 Industrials 80 Conglomerates The combination of the Industry Groups will be reviewed at least every two years.
-Considerations for Deciding the Constituent Number for Each Industry Group The number of constituents in each Industry Group will be decided by the below principles: Target to cover at least 50%, in terms of market capitalisation, for each Industry Group;
-Characteristics of the Industry Group which include the distribution of the listed companies in terms of their size and number; and The Industry Group weighting in the index compared to the market.
-The index will also maintain at least 20 constituents that are classified as “Hong Kong” Companies and this number will be reviewed at least every two years.
4 unchanged sections
M4Principles of Constituent Selection
M4Number of Constituents
M1Sub-indexes
M1HSICS Sub-index Code Industry
M6modifiedOther Informationsimilarity 98%
--- Other Information (2023-12-01_286fb8c0)
+++ Other Information (2026-10-02_ddf3b341)
@@ -1,2 +1,2 @@
-Review Quarterly (Data cut-off end-March / June / September / Frequency: December) Rebalancing Quarterly Frequency: Weighting: Freefloat-adjusted market capitalisation weighted Capping: Non-Foreign Companies Constituent: 8% (individual) Foreign Companies Constituent: 4% (individual);
-10% (aggregate) Launch Date: 24 November 1969 Base Date: 31 July 1964 Base Value: 100 Currency: Hong Kong Dollars Dissemination Real-time at every two seconds Frequency: Vendor Codes: Refinitiv Bloomberg ET-Net Infocast PI .HSI HSI HSI HSI Gross TRI .HSIDV HSIRH - - Net TRI .HSIDVN HSINH - - For more information on the terms used in this document and calculation details, please refer to the Index Methodology General Guide on HSIL’s website.
+Review Quarterly (Data cut-off end-March / June / September / Frequency: December) Rebalancing Quarterly Frequency: Weighting: Freefloat-adjusted market capitalisation weighted Capping: Non-Foreign Companies Constituent: 8% (individual) Foreign Companies Constituent: 4% (individual);
+10% (aggregate) Launch Date: 24 November 1969 Base Date: 31 July 1964 Base Value: 100 Currency: Hong Kong Dollars Dissemination Real-time at every two seconds Frequency: Vendor Codes: Refinitiv Bloomberg ET-Net Infocast WIND PI .HSI HSI HSI HSI HSI.HI Gross TRI .HSIDV HSIRH - - HSIRH.HI Net TRI .HSIDVN HSINH - - HSINH.HI For more information on the terms used in this document and calculation details, please refer to the Index Methodology General Guide on HSIL’s website.
othermodifiedAmendment Historysimilarity 99%
--- Amendment History (2023-12-01_286fb8c0)
+++ Amendment History (2026-10-02_ddf3b341)
@@ -15,5 +15,6 @@
2.2 May 2023
Added exclusion of Specialist Technology Companies from the index universe Updated the constituent number (fixed at 100)
2.3 July 2023
-Added Primary-listed Foreign Companies to the universe and their weight capping Date Description Removed the capping on the “Hong Kong” constituent number
+Added Primary-listed Foreign Companies to the universe and their weight capping Amendment History
+Date Description Removed the capping on the “Hong Kong” constituent number
(Effective starting from November 2023 index review)
Front matterp.1● minor · modified
The HSI universe exclusion for Specialist Technology Companies changes the required stock-name marker from “PC” to “P”. This alters the eligibility screen for securities classified as Specialist Technology Companies.Rated minor: The changed rule is the index universe/eligibility exclusion marker for Specialist Technology Companies: “PC” becomes “P”. Because this changes the stated condition identifying excluded securities, it is substantive and falls within M1-M5, which caps materiality at minor. No explicit effective date is stated in the text.Model-written, for reference only.Open p.1 ↗
Selection by Industry Groupp.2● minor · modified
The updated section adds the HSICS industry-group mapping and explicit rules for setting constituent counts by industry group, including a target of at least 50% market-cap coverage per group, industry characteristics and index-versus-market weighting considerations, and a minimum of 20 constituents classified as “Hong Kong” Companies. It also requires reviews of the industry-group combination and Hong Kong constituent minimum at least every two years.Rated minor: The change adds substantive selection/allocation criteria and a minimum constituent requirement tied to industry classification and Hong Kong Company status, affecting which securities or groups users expect in the index. These are M4 selection-related rules, so the ceiling is minor; no explicit effective date is stated.Model-written, for reference only.Open p.2 ↗
HSICSp.2● editorial · removed
Editorial change: wording only, no rule changed.Open old p.2 ↗
Other Informationp.5● editorial · modified
The vendor-code table adds WIND as a data vendor and lists WIND codes for the Price Index (.HSI -> HSI.HI), Gross Total Return Index (.HSIDV/HSIRH -> HSIRH.HI), and Net Total Return Index (.HSIDVN/HSINH -> HSINH.HI). Review/rebalancing frequency, weighting, capping, dates, currency, and dissemination frequency are unchanged.Rated editorial: The only substantive-looking change is addition of a third-party vendor and its ticker symbols; this is disclosure/market-data identifier information, not a change to index review schedule, eligibility, selection, weighting, calculation, or corporate-action rules. No effective date is stated.Model-written, for reference only.Open p.5 ↗
Amendment Historyp.6● editorial · modified
The amendment-history entry for version 2.3 is reformatted by inserting the heading “Amendment History” and moving “Date Description” onto a separate line. No index methodology rule, date, threshold, or historical amendment description is changed.Rated editorial: The only change is layout/text wrapping in the Amendment History: a repeated heading is inserted and “Date Description” is placed on another line. It does not add, remove, or modify an operative index rule, so under M10 disclosure/history formatting this is an editorial.Model-written, for reference only.Open p.6 ↗
Disclaimerp.8● editorial · moved
The disclaimer was rewritten and expanded. It retains the reference-only, no-warranty, no-liability, and change-without-notice language, but replaces generic professional-advice guidance with investment-risk language, advice against relying solely on the document, independent investment-advice recommendations, and a new disclosure concerning HSBC Group conflicts of interest and related safeguards.Rated editorial: No index methodology rule, eligibility criterion, selection process, weighting formula, review schedule, corporate-action treatment, or calculation procedure changed. The update concerns legal disclaimer and conflicts-of-interest disclosure, which falls under governance/disclosure and does not add notice periods or consultation obligations; the page move is also non-substantive.Model-written, for reference only.Open p.8 ↗
v2.2-2023.05.03 → v2.3-2023.11.20· earlier stepLatest step ↗·5 changes:● 1 major ● 4 minor · 0 editorial
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is:majoris:minoris:editorial one grade
m:M3 an outline item (M1–M10)
kind:addedkind:removedkind:movedkind:modified
p:81 or p:80-90 a page or pages
"exact phrase" words in this order
-word leave out changes with this word
Grades
●Major: a rule changed in the review schedule, buffers, corporate actions or calculation (M6–M9)
●Minor: a rule changed in identity, universe, eligibility, selection or weighting (M1–M5), or a governance change to notice periods or consultation (M10)
●Editorial: no rule changed: wording, layout, numbering, or other governance text (M10)
● minor · modified
The index universe exclusion was narrowed from all Foreign Companies to “secondarylisted Foreign Companies.” Other listed exclusions and the stated objective remain unchanged.Rated minor: The universe eligibility rule changes which Foreign Companies are excluded: the prior text excluded Foreign Companies generally, while the updated text excludes only secondarylisted Foreign Companies. This changes the set of securities potentially included and is an M2 universe change, so it is minor; no effective date is stated.Model-written, for reference only.Open p.1 ↗
● minor · modified
The eligibility criteria section removes the separate "Greater China Companies" geographical requirement. All other stated criteria—LargeCap/MidCap constituent status, at least three months' listing history, and the monthly turnover velocity test—remain unchanged.Rated minor: The change removes an M3 eligibility condition—the Greater China geographical requirement—potentially changing the set of securities eligible for inclusion. No effective date is stated.Model-written, for reference only.Open p.1 ↗
● minor · modified
The required number of constituents classified as “Hong Kong” Companies changes from a fixed range of 20 to 25 to a minimum of 20 with no stated upper cap. The biennial review requirement for this number remains unchanged.Rated minor: The changed rule sets the constituent count requirement for Hong Kong Companies, replacing the 20–25 range with a minimum of 20 and thereby changing the permissible selection set. This is an M4 selection/constituent-number rule, so the materiality is minor; no effective date is stated in the provided text.Model-written, for reference only.Open p.2 ↗
● major · modified
The capping rule was changed from a single 8% cap on every constituent to differentiated caps based on foreign-company status: non-foreign companies remain capped at 8% individually, while foreign companies are capped at 4% individually and 10% in aggregate. This affects expected constituent weights and index calculation outcomes.Rated major: The substantive rule changed is the index weighting cap: foreign-company constituents are now subject to new 4% individual and 10% aggregate caps, whereas the prior rule only stated an 8% individual cap. Because capping affects index calculation and resulting weights, this falls under M6-M9 and is major; no effective date is stated in the provided text.Model-written, for reference only.Open p.5 ↗
● minor · modified
The amendment history adds version 2.3, dated July 2023. It records that Primary-listed Foreign Companies were added to the index universe with weight capping, and that the cap on the number of “Hong Kong” constituents was removed, effective from the November 2023 index review.Rated minor: The newly recorded amendment changes index universe eligibility by adding Primary-listed Foreign Companies and changes a constituent-number constraint by removing the “Hong Kong” constituent cap. These affect M1-M5 eligibility/universe and constituent-count rules, so the ceiling is minor. The text gives an effective review month but not a specific ISO calendar date, so effective_date is null.Model-written, for reference only.Open p.6 ↗
M10modifiedFront mattersimilarity 99%
--- Front matter (2023-05-12_d22d3c8a)
+++ Front matter (2023-12-01_286fb8c0)
@@ -1,4 +1,4 @@
This methodology document should be read in conjunction with the Index Methodology General Guide on Hang Seng Indexes Co Ltd (“HSIL”)’s website.
Readers are reminded that there might be exceptions in the index handling to the below general approach in some special situations and HSIL reserves the right to determine the most appropriate handling.
Objective: To serve as a benchmark to reflect the overall performance of the Hong Kong stock market.
-Universe: Constituents of the Hang Seng Composite LargeCap & MidCap Index as of index review data cut-off date; excluding Foreign Companies, Stapled Securities, Biotech Companies with stock names end with marker “B” and Specialist Technology Companies with stock names end with marker “PC”.
+Universe: Constituents of the Hang Seng Composite LargeCap & MidCap Index as of index review data cut-off date; excluding secondarylisted Foreign Companies, Stapled Securities, Biotech Companies with stock names end with marker “B” and Specialist Technology Companies with stock names end with marker “PC”.
M3modifiedEligibility Criteriasimilarity 93%
--- Eligibility Criteria (2023-05-12_d22d3c8a)
+++ Eligibility Criteria (2023-12-01_286fb8c0)
@@ -1 +1 @@
-Market Value Hang Seng Composite LargeCap & MidCap Index constituents Requirements: Geographical Greater China Companies Requirements: Listing History At least 3 months Requirements: (counting up to the index review meeting date) Turnover Velocity Test for Tradable Indexes Requirements: (minimum velocity of 0.1% on monthly basis, details please refer to the Index Methodology General Guide)
+Market Value Hang Seng Composite LargeCap & MidCap Index constituents Requirements: Listing History At least 3 months Requirements: (counting up to the index review meeting date) Turnover Velocity Test for Tradable Indexes Requirements: (minimum velocity of 0.1% on monthly basis, details please refer to the Index Methodology General Guide)
2 unchanged sections
M4Constituent Selection
M4Selection by Industry Group
M4modifiedHSICSsimilarity 99%
--- HSICS (2023-05-12_d22d3c8a)
+++ HSICS (2023-12-01_286fb8c0)
@@ -1,4 +1,4 @@
Industry Group Code Industry 1 50 Financials 2 70 Information Technology 23 Consumer Discretionary 3 25 Consumer Staples 4 60 Properties & Construction 35 Telecommunications 5 40 Utilities 6 28 Healthcare 00 Energy 05 Materials 7 10 Industrials 80 Conglomerates The combination of the Industry Groups will be reviewed at least every two years.
Considerations for Deciding the Constituent Number for Each Industry Group The number of constituents in each Industry Group will be decided by the below principles: Target to cover at least 50%, in terms of market capitalisation, for each Industry Group;
Characteristics of the Industry Group which include the distribution of the listed companies in terms of their size and number; and The Industry Group weighting in the index compared to the market.
-The index will also maintain 20 to 25 constituents that are classified as “Hong Kong” Companies and this number will be reviewed at least every two years.
+The index will also maintain at least 20 constituents that are classified as “Hong Kong” Companies and this number will be reviewed at least every two years.
4 unchanged sections
M4Principles of Constituent Selection
M4Number of Constituents
M1Sub-indexes
M1HSICS Sub-index Code Industry
M6modifiedOther Informationsimilarity 93%
--- Other Information (2023-05-12_d22d3c8a)
+++ Other Information (2023-12-01_286fb8c0)
@@ -1 +1,2 @@
-Review Quarterly (Data cut-off end-March / June / September / Frequency: December) Rebalancing Quarterly Frequency: Weighting: Freefloat-adjusted market capitalisation weighted Capping: 8% on individual securities Launch Date: 24 November 1969 Base Date: 31 July 1964 Base Value: 100 Currency: Hong Kong Dollars Dissemination Real-time at every two seconds Frequency: Vendor Codes: Refinitiv Bloomberg ET-Net Infocast PI .HSI HSI HSI HSI Gross TRI .HSIDV HSIRH - - Net TRI .HSIDVN HSINH - - For more information on the terms used in this document and calculation details, please refer to the Index Methodology General Guide on HSIL’s website.
+Review Quarterly (Data cut-off end-March / June / September / Frequency: December) Rebalancing Quarterly Frequency: Weighting: Freefloat-adjusted market capitalisation weighted Capping: Non-Foreign Companies Constituent: 8% (individual) Foreign Companies Constituent: 4% (individual);
+10% (aggregate) Launch Date: 24 November 1969 Base Date: 31 July 1964 Base Value: 100 Currency: Hong Kong Dollars Dissemination Real-time at every two seconds Frequency: Vendor Codes: Refinitiv Bloomberg ET-Net Infocast PI .HSI HSI HSI HSI Gross TRI .HSIDV HSIRH - - Net TRI .HSIDVN HSINH - - For more information on the terms used in this document and calculation details, please refer to the Index Methodology General Guide on HSIL’s website.
othermodifiedAmendment Historysimilarity 92%
--- Amendment History (2023-05-12_d22d3c8a)
+++ Amendment History (2023-12-01_286fb8c0)
@@ -14,3 +14,6 @@
2.1 September 2022 Supplemented profitability consideration under financial performance for candidate assessment
2.2 May 2023
Added exclusion of Specialist Technology Companies from the index universe Updated the constituent number (fixed at 100)
+2.3 July 2023
+Added Primary-listed Foreign Companies to the universe and their weight capping Date Description Removed the capping on the “Hong Kong” constituent number
+(Effective starting from November 2023 index review)
1 unchanged section
otherDisclaimer
7 unchanged sections in all.
Loading…
·
Front matterp.1● minor · modified
The index universe exclusion was narrowed from all Foreign Companies to “secondarylisted Foreign Companies.” Other listed exclusions and the stated objective remain unchanged.Rated minor: The universe eligibility rule changes which Foreign Companies are excluded: the prior text excluded Foreign Companies generally, while the updated text excludes only secondarylisted Foreign Companies. This changes the set of securities potentially included and is an M2 universe change, so it is minor; no effective date is stated.Model-written, for reference only.Open p.1 ↗
Eligibility Criteriap.1● minor · modified
The eligibility criteria section removes the separate "Greater China Companies" geographical requirement. All other stated criteria—LargeCap/MidCap constituent status, at least three months' listing history, and the monthly turnover velocity test—remain unchanged.Rated minor: The change removes an M3 eligibility condition—the Greater China geographical requirement—potentially changing the set of securities eligible for inclusion. No effective date is stated.Model-written, for reference only.Open p.1 ↗
HSICSp.2● minor · modified
The required number of constituents classified as “Hong Kong” Companies changes from a fixed range of 20 to 25 to a minimum of 20 with no stated upper cap. The biennial review requirement for this number remains unchanged.Rated minor: The changed rule sets the constituent count requirement for Hong Kong Companies, replacing the 20–25 range with a minimum of 20 and thereby changing the permissible selection set. This is an M4 selection/constituent-number rule, so the materiality is minor; no effective date is stated in the provided text.Model-written, for reference only.Open p.2 ↗
Other Informationp.5● major · modified
The capping rule was changed from a single 8% cap on every constituent to differentiated caps based on foreign-company status: non-foreign companies remain capped at 8% individually, while foreign companies are capped at 4% individually and 10% in aggregate. This affects expected constituent weights and index calculation outcomes.Rated major: The substantive rule changed is the index weighting cap: foreign-company constituents are now subject to new 4% individual and 10% aggregate caps, whereas the prior rule only stated an 8% individual cap. Because capping affects index calculation and resulting weights, this falls under M6-M9 and is major; no effective date is stated in the provided text.Model-written, for reference only.Open p.5 ↗
Amendment Historyp.6● minor · modified
The amendment history adds version 2.3, dated July 2023. It records that Primary-listed Foreign Companies were added to the index universe with weight capping, and that the cap on the number of “Hong Kong” constituents was removed, effective from the November 2023 index review.Rated minor: The newly recorded amendment changes index universe eligibility by adding Primary-listed Foreign Companies and changes a constituent-number constraint by removing the “Hong Kong” constituent cap. These affect M1-M5 eligibility/universe and constituent-count rules, so the ceiling is minor. The text gives an effective review month but not a specific ISO calendar date, so effective_date is null.Model-written, for reference only.Open p.6 ↗
v2.0-2021.05.14 → v2.2-2023.05.03· earlier stepLatest step ↗·5 changes:● 0 major ● 4 minor · 1 editorial
View:
Item ▾Kind ▾
?
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is:majoris:minoris:editorial one grade
m:M3 an outline item (M1–M10)
kind:addedkind:removedkind:movedkind:modified
p:81 or p:80-90 a page or pages
"exact phrase" words in this order
-word leave out changes with this word
Grades
●Major: a rule changed in the review schedule, buffers, corporate actions or calculation (M6–M9)
●Minor: a rule changed in identity, universe, eligibility, selection or weighting (M1–M5), or a governance change to notice periods or consultation (M10)
●Editorial: no rule changed: wording, layout, numbering, or other governance text (M10)
● minor · modified
The index universe exclusion list is expanded. In addition to Foreign Companies, Stapled Securities, and Biotech Companies marked “B”, Specialist Technology Companies whose stock names end with the marker “PC” are now excluded from eligibility.Rated minor: The changed rule is the index universe/eligibility exclusion: Specialist Technology Companies marked “PC” are newly excluded, affecting the set of securities that may be considered. This is an M1-M5 universe/eligibility change, so the materiality is minor. No effective date is stated in the provided text.Model-written, for reference only.Open p.1 ↗
● minor · modified
The constituent-selection criterion for financial performance now expressly includes profitability. The other selection and removal principles remain unchanged.Rated minor: The change adds an express profitability component to the financial-performance consideration used in constituent selection. This affects M4 selection criteria/expectations, so it is substantive but capped at minor; no effective date is stated.Model-written, for reference only.Open p.3 ↗
● minor · modified
The constituent-count expansion language was updated. The prior interim target of reaching 80 constituents by mid-2022 was removed; the current text states that the number is fixed at 100 while expansion is still in progress.Rated minor: The rule governing the number of constituents changed: the prior interim 80-constituent target and mid-2022 timing were replaced by a stated fixed count of 100, subject to ongoing expansion. This affects M4 selection/universe-size expectations, so the ceiling is minor; no effective date is stated.Model-written, for reference only.Open p.3 ↗
● minor · modified
The amendment history adds two later methodology updates. September 2022 adds a profitability consideration for candidate financial-performance assessment, while May 2023 records exclusion of Specialist Technology Companies from the index universe and fixes the constituent number at 100.Rated minor: The added history entries state substantive changes to candidate assessment and the index universe, including a new exclusion category and clarification that the constituent number is fixed at 100. These affect eligibility/selection-related expectations and fall within M1-M5, so the ceiling is minor; the listed months are not explicit effective dates.Model-written, for reference only.Open p.6 ↗
● editorial · modified
The disclaimer is substantively unchanged. The only edit updates the copyright year from 2021 to 2023.Rated editorial: No index rule, methodology term, eligibility criterion, calculation, schedule, or disclosure obligation changed. The only change is a copyright-year update in the disclaimer, which is administrative and non-substantive.Model-written, for reference only.Open p.7 ↗
M10modifiedFront mattersimilarity 95%
--- Front matter (2021-08-23_e883d2d1)
+++ Front matter (2023-05-12_d22d3c8a)
@@ -1,4 +1,4 @@
This methodology document should be read in conjunction with the Index Methodology General Guide on Hang Seng Indexes Co Ltd (“HSIL”)’s website.
Readers are reminded that there might be exceptions in the index handling to the below general approach in some special situations and HSIL reserves the right to determine the most appropriate handling.
Objective: To serve as a benchmark to reflect the overall performance of the Hong Kong stock market.
-Universe: Constituents of the Hang Seng Composite LargeCap & MidCap Index as of index review data cut-off date; excluding Foreign Companies, Stapled Securities and Biotech Companies with stock names end with marker “B”.
+Universe: Constituents of the Hang Seng Composite LargeCap & MidCap Index as of index review data cut-off date; excluding Foreign Companies, Stapled Securities, Biotech Companies with stock names end with marker “B” and Specialist Technology Companies with stock names end with marker “PC”.
4 unchanged sections
M3Eligibility Criteria
M4Constituent Selection
M4Selection by Industry Group
M4HSICS
M4modifiedPrinciples of Constituent Selectionsimilarity 99%
--- Principles of Constituent Selection (2021-08-23_e883d2d1)
+++ Principles of Constituent Selection (2023-05-12_d22d3c8a)
@@ -1,5 +1,5 @@
In general, eligible securities will be evaluated within each Industry Group according to the following considerations:
-Representativeness; Market capitalisation; Turnover; and Financial performance.
+Representativeness; Market capitalisation; Turnover; and Financial performance, including profitability.
Cross-Industry Group constituent changes might take place to restore sectoral balance.
In each review, there may or may not be constituent additions or deletions.
Existing constituents failing to meet the eligibility requirements may be considered for removal.
M4modifiedNumber of Constituentssimilarity 31%
--- Number of Constituents (2021-08-23_e883d2d1)
+++ Number of Constituents (2023-05-12_d22d3c8a)
@@ -1 +1 @@
-Target to reach 80 by mid-2022 and ultimately fixed at 100.
+Fixed at 100 (in the progress of expansion).
3 unchanged sections
M1Sub-indexes
M1HSICS Sub-index Code Industry
M9Other Information
othermodifiedAmendment Historysimilarity 89%
--- Amendment History (2021-08-23_e883d2d1)
+++ Amendment History (2023-05-12_d22d3c8a)
@@ -11,3 +11,6 @@
1.7 September 2020 Updated constituent number Updated vendor codes
2.0 May 2021
Changed constituent selection method by Industry Groups Shortened the listing history requirement to 3 months Updated the constituent number to 100 Aligned the weighting cap on individual constituent to 8% Updated format of the Index Methodology
+2.1 September 2022 Supplemented profitability consideration under financial performance for candidate assessment
+2.2 May 2023
+Added exclusion of Specialist Technology Companies from the index universe Updated the constituent number (fixed at 100)
Front matterp.1● minor · modified
The index universe exclusion list is expanded. In addition to Foreign Companies, Stapled Securities, and Biotech Companies marked “B”, Specialist Technology Companies whose stock names end with the marker “PC” are now excluded from eligibility.Rated minor: The changed rule is the index universe/eligibility exclusion: Specialist Technology Companies marked “PC” are newly excluded, affecting the set of securities that may be considered. This is an M1-M5 universe/eligibility change, so the materiality is minor. No effective date is stated in the provided text.Model-written, for reference only.Open p.1 ↗
Principles of Constituent Selectionp.3● minor · modified
The constituent-selection criterion for financial performance now expressly includes profitability. The other selection and removal principles remain unchanged.Rated minor: The change adds an express profitability component to the financial-performance consideration used in constituent selection. This affects M4 selection criteria/expectations, so it is substantive but capped at minor; no effective date is stated.Model-written, for reference only.Open p.3 ↗
Number of Constituentsp.3● minor · modified
The constituent-count expansion language was updated. The prior interim target of reaching 80 constituents by mid-2022 was removed; the current text states that the number is fixed at 100 while expansion is still in progress.Rated minor: The rule governing the number of constituents changed: the prior interim 80-constituent target and mid-2022 timing were replaced by a stated fixed count of 100, subject to ongoing expansion. This affects M4 selection/universe-size expectations, so the ceiling is minor; no effective date is stated.Model-written, for reference only.Open p.3 ↗
Amendment Historyp.6● minor · modified
The amendment history adds two later methodology updates. September 2022 adds a profitability consideration for candidate financial-performance assessment, while May 2023 records exclusion of Specialist Technology Companies from the index universe and fixes the constituent number at 100.Rated minor: The added history entries state substantive changes to candidate assessment and the index universe, including a new exclusion category and clarification that the constituent number is fixed at 100. These affect eligibility/selection-related expectations and fall within M1-M5, so the ceiling is minor; the listed months are not explicit effective dates.Model-written, for reference only.Open p.6 ↗
Disclaimerp.7● editorial · modified
The disclaimer is substantively unchanged. The only edit updates the copyright year from 2021 to 2023.Rated editorial: No index rule, methodology term, eligibility criterion, calculation, schedule, or disclosure obligation changed. The only change is a copyright-year update in the disclaimer, which is administrative and non-substantive.Model-written, for reference only.Open p.7 ↗
v1.0-2011.08.16 → v2.0-2021.05.14· earlier stepLatest step ↗·20 changes:● 0 major ● 17 minor · 3 editorial
View:
Item ▾Kind ▾
?
Search
is:majoris:minoris:editorial one grade
m:M3 an outline item (M1–M10)
kind:addedkind:removedkind:movedkind:modified
p:81 or p:80-90 a page or pages
"exact phrase" words in this order
-word leave out changes with this word
Grades
●Major: a rule changed in the review schedule, buffers, corporate actions or calculation (M6–M9)
●Minor: a rule changed in identity, universe, eligibility, selection or weighting (M1–M5), or a governance change to notice periods or consultation (M10)
●Editorial: no rule changed: wording, layout, numbering, or other governance text (M10)
● minor · removed
The 2011 HSI management-methodology cover/table-of-contents section and its initial rules were removed in the 2021 document set; the updated version contains no corresponding section text. The deleted passage covered HSI overview and governance responsibilities, plus the beginning of the constituent eligibility/universe rules.Rated minor: The removed section contains substantive index rules, including the HSI universe definition and the 15% individual weighting cap, which fall within M1-M5 eligibility/identity/weighting matters. Because the updated supplied text is absent rather than a replacement rule, the change is classified based on deletion of these stated rules; no effective date is stated.Model-written, for reference only.Open old p.1 ↗
● minor · removed
The updated methodology removes the standalone market value eligibility rules. These previously defined individual stock MV as the average of month-end values over the past 12 months and required eligible stocks to fall within the top 90th percentile of the universe by total MV.Rated minor: The change removes the explicit 12-month average MV definition and the top-90th-percentile eligibility threshold. This is an M3 eligibility rule change, which is capped at minor; the provided text does not show that the rule was merely relocated.Model-written, for reference only.Open old p.5 ↗
● minor · removed
The updated methodology removes the standalone 24-month turnover test. Previously, each stock was assessed over eight quarterly sub-periods, received weighted points for ranking in the top 90th percentile of universe turnover, and needed at least 8 of 12 points to pass. The updated text contains no corresponding turnover requirement section.Rated minor: Removal of the turnover eligibility criterion changes which securities may satisfy index requirements. This is an M3 eligibility change, so the materiality is minor; no explicit effective date is stated.Model-written, for reference only.Open old p.5 ↗
● minor · removed
The updated methodology removes the dedicated listing-history eligibility rule. The prior text normally required at least 24 months of listing before HSI inclusion, while allowing very large market-cap stocks with less history to be considered under a stricter market-cap requirement.Rated minor: The change removes an eligibility condition and its large-cap exception, affecting which securities may be considered for inclusion. Because this concerns M3 eligibility rather than calculation, review schedule, buffers, or corporate-action treatment, the ceiling is minor.Model-written, for reference only.Open old p.6 ↗
● minor · removed
The prior section linking market-value rank bands to required listing histories, defining MV rank averages, and setting turnover treatment by listing history has been removed. The updated version contains no corresponding text in the supplied section, so those explicit eligibility/turnover rules are no longer present here.Rated minor: The removed text states substantive eligibility-related rules: MV-rank-based listing-history requirements, the MV averaging basis, and turnover pass conditions based on listing history. These affect which securities qualify and therefore fall under M3 eligibility; the supplied updated text does not restate them elsewhere, so the change is minor rather than editorial.Model-written, for reference only.Open old p.6 ↗
● minor · removed
The prior H-share eligibility restriction was removed: Mainland China enterprises' H-shares listed on HKEx are no longer stated to be ineligible unless the company has no unlisted share capital. The provided updated excerpt contains no replacement text for the removed section.Rated minor: The change removes an eligibility condition affecting whether H-share companies can be selected as HSI constituents. This is an M3 eligibility/universe rule, so the materiality ceiling is minor; no effective date is stated.Model-written, for reference only.Open old p.6 ↗
● editorial · removed
The prior HSI section at pages 8-8 is absent in the updated version, but neither the supplied previous text nor updated text contains any rule wording to compare. Therefore no substantive index-rule change can be identified from the provided evidence.Rated editorial: The change record indicates only that a section was removed, with empty previous text and no updated text. No identity, universe, eligibility, selection, weighting, or other operative rule is present to evaluate, so under the materiality rule this is an editorial-level structural/removal artifact rather than a substantive rule change.Model-written, for reference only.Open old p.8 ↗
● minor · removed
The entire HSICS section was removed in the updated document, including the Hang Seng Industry Classification System sub-index industry code table. The deleted passage also contained other rules on quarterly reviews, calculation, rebalancing, dissemination, contacts, and disclaimer.Rated minor: The removed rule is the HSICS mapping of sub-index codes to industries, which concerns index identity/classification under M1 and could affect how users identify or interpret index industry categories. No replacement text or effective date is provided.Model-written, for reference only.Open old p.8 ↗
● minor · added
The updated methodology adds front-matter language defining the index objective and its starting universe. The universe is limited to Hang Seng Composite LargeCap & MidCap Index constituents at the review data cut-off, excluding Foreign Companies, Stapled Securities, and Biotech Companies whose stock names end with marker “B”. It also notes that HSIL may make exceptions in special situations.Rated minor: A substantive index-universe rule was added, including the source universe and three exclusions, which affects the set of securities eligible for the index. Under the materiality framework, universe and eligibility changes are capped at minor. No explicit effective date is stated in the text.Model-written, for reference only.Open p.1 ↗
● minor · added
The updated methodology adds an Eligibility Criteria section. It restricts eligible securities to Hang Seng Composite LargeCap and MidCap Index constituents that are Greater China companies, require at least three months of listing history counted to the index review meeting date, and satisfy a monthly turnover velocity minimum of 0.1%.Rated minor: The change adds eligibility rules governing universe membership, geography, minimum listing history, and a numeric turnover-velocity threshold. These affect which securities may qualify and fall under M3, so the materiality is minor.Model-written, for reference only.Open p.1 ↗
● minor · added
Section Constituent Selection addedRated minor: a rule, number or sentence was added or removed (set by a text rule, without a model reading).Open p.2 ↗
● minor · added
The updated methodology adds a provision stating that eligible candidates are assigned to Industry Groups based on their Hang Seng Industry Classification System (HSICS) classification. The excerpt introduces an industry-based classification step but does not list the Industry Groups or any selection thresholds in the supplied text.Rated minor: The change adds a rule governing how eligible candidates are classified for selection by industry group, affecting the M4 selection framework. Because the substance concerns candidate selection rather than calculation, review timing, buffers, corporate actions, or governance, the ceiling is minor.Model-written, for reference only.Open p.2 ↗
● minor · added
The updated methodology adds an HSICS section defining the Industry Group taxonomy and principles for determining constituent numbers by Industry Group. It introduces a minimum 50% market-capitalisation coverage target for each Industry Group and requires maintaining 20–25 constituents classified as “Hong Kong” Companies, with reviews at least every two years.Rated minor: The newly added section introduces substantive Industry Group allocation principles, a numeric 50% coverage target, and a 20–25 constituent requirement for Hong Kong Companies. These affect selection and the set/number of eligible or selected constituents, so under M1–M5 the materiality is minor. No explicit effective date is stated.Model-written, for reference only.Open p.2 ↗
● minor · added
A new 'Principles of Constituent Selection' section was added. It specifies that eligible securities are assessed by Industry Group based on representativeness, market capitalisation, turnover, and financial performance; permits cross-Industry Group changes for sectoral balance; and states that eligible but smallest or least-liquid constituents may still be removed if suitable replacements exist.Rated minor: The added provisions identify constituent-selection criteria and circumstances under which existing constituents may be removed despite satisfying eligibility requirements. This changes expectations for constituent selection/removal, an M4 item, so the ceiling is minor. No explicit effective date is stated in the provided text.Model-written, for reference only.Open p.3 ↗
● minor · added
The updated methodology adds a constituent-count policy: the index targets 80 constituents by mid-2022 and will ultimately be fixed at 100. This introduces a numerical selection/universe-size rule that was absent from the prior section.Rated minor: The changed rule is the number of constituents, an M4 selection/constitution-size requirement, with new numeric targets of 80 and 100. Because M1-M5 changes are capped at minor, the materiality is minor; no explicit effective date is stated.Model-written, for reference only.Open p.3 ↗
● minor · added
The updated methodology adds a Sub-indexes section identifying four sub-indexes: Finance, Utilities, Properties, and Commerce and Industry. It also states that constituents are assigned to one sub-index according to their HSICS industry classification and the mapping table.Rated minor: The added rule defines the set of sub-indexes and the basis for assigning constituents to them, affecting index identity/classification. This is an M1-related substantive change and therefore minor; no effective date is stated.Model-written, for reference only.Open p.4 ↗
● minor · added
The updated methodology adds an HSICS sub-index code-to-industry mapping table. It assigns numeric codes to industry categories, including codes 00, 05, 10, 23, 25, 28, 35, 40, 50, 60, 70, and 80, and lists Conglomerates without a code in the supplied text.Rated minor: The change adds explicit HSICS industry classification codes and labels that were absent from the previous version. This affects the identity/classification framework used for index constituents and falls within M1, so the materiality is minor.Model-written, for reference only.Open p.4 ↗
● minor · added
A new “Other Information” summary section was added, disclosing quarterly reviews with quarter-end data cut-offs, quarterly rebalancing, freefloat-adjusted market-cap weighting, an 8% individual security cap, launch/base data, dissemination frequency, and vendor codes. Because the section was absent in the prior version and states index-level characteristics including weighting and capping, the addition is substantive for index users.Rated minor: The added text introduces disclosed rules and index characteristics, notably freefloat-adjusted market-capitalisation weighting and an 8% individual-security cap, which fall within M1-M5 identity/universe/weighting-related matters, so the ceiling is minor. No explicit effective date is stated.Model-written, for reference only.Open p.5 ↗
● editorial · added
An Amendment History section was added, documenting prior methodology issues and revisions from September 2011 through May 2021. It is a historical disclosure log rather than a new operative index rule in this change.Rated editorial: The change adds governance/disclosure content: an amendment history describing past methodology changes. No new operative rule, threshold, trigger, or effective date is introduced by this section itself; under M10, disclosure-only changes are editorial unless they alter notice or consultation obligations.Model-written, for reference only.Open p.6 ↗
● editorial · added
A new disclaimer page was added, stating that the document's information is for reference only, is not warranted as accurate or complete, does not constitute professional advice, and may change without notice. It also includes a 2021 copyright notice.Rated editorial: The addition is a governance/disclosure disclaimer and copyright notice rather than an index methodology rule. It does not alter index identity, universe, eligibility, selection, weighting, reviews, corporate actions, or calculation, and it does not establish a notice period or consultation obligation.Model-written, for reference only.Open p.7 ↗
otherremovedHSI_cover_26Jul11
--- HSI_cover_26Jul11 (2011-11-25_468de86b)
+++ /dev/null
@@ -1,35 +0,0 @@
-For Managing the Hang Seng Index
-Version 1.0 September 2011 Table of Content
-Page
-1. Overview
-2. Management Responsibility
-3. Constituent Eligibility
-4. Sub-Indexes
-5. Index Review and Constituent Changes
-6. Index Calculation
-7. Index Rebalancing
-8. Dissemination
-9. Contact Information
-10. Disclaimer 1 Overview
-1.1 The Hang Seng Index (“HSI”) serves as a market benchmark that reflects the overall movement of the Hong Kong stock market.
-1.2 The HSI was launched on 24 November 1969 and is one of the earliest stock market indexes in Hong Kong. The HSI measures the performance of the largest and most liquid companies listed in Hong Kong.
-1.3 To better reflect the stock market movements of the major sectors, four sub-indexes were introduced in 1985. The constituent stocks of the HSI are grouped under Finance, Utilities, Properties, and Commerce and Industry sub-indexes.
-1.4 The HSI is a freefloat-adjusted market capitalisation weighted index with a 15% cap on the weighting of individual constituent stocks.
-1.5 The HSI is calculated and disseminated real-time at 15-second intervals during the trading hours of the stock exchange of Hong Kong (“HKEx”).
-2 Management Responsibility
-Hang Seng Indexes Company Limited (“HSIL”)
-2.1 HSIL is responsible for conducting regular reviews in accordance with the Index Methodology.
-2.2 HSIL is responsible for monitoring company announcements and making ad hoc proposals – which must be approved by the Chairman of the HSI Advisory Committee – if constituent changes between the regular reviews are needed.
-2.3 HSIL is responsible for seeking the HSI Advisory Committee’s endorsement of any special action in cases where, due to exceptional circumstances, an index review is not conducted according to the Index Methodology.
-2.4 HSIL is responsible for seeking the HSI Advisory Committee’s endorsement of changes to the Index Methodology. HSI Advisory Committee
-2.5 The Committee is responsible for ensuring index reviews are undertaken in accordance with the Index Methodology.
-2.6 The Committee is responsible for reviewing any actions proposed by HSIL in the event that, due to exceptional circumstances, an index review is not conducted according to the Index Methodology.
-2.7 The Committee is responsible for reviewing and endorsing all changes to the Index Methodology as proposed by HSIL.
-2.8 The Committee is responsible for giving advice on any issues related to the Index Methodology.
-3 Constituent Eligibility
-Universe
-3.1 The universe of stocks (“Universe”) for the HSI includes stocks primarily listed on the Main Board of the HKEx, excluding stocks that are secondary listings, preference shares, REITs, debt securities, mutual funds and other derivatives.
-3.2 If a company has two classes of listed shares, each class of shares will be considered separately.
-Note: Companies which are classified by HKEx as foreign companies are currently not included in the Universe for the HSI, as an interim policy announced in Jun 2010 and extended after a study and survey undertaken in the 2nd half of 2010 (report released in Jan 2011).
-Eligible Stocks
-3.3 A stock is eligible for constituent selection if it fulfils the following eligibility criteria.
M3removedMarket Value (“MV”) Requirement
--- Market Value (“MV”) Requirement (2011-11-25_468de86b)
+++ /dev/null
@@ -1,2 +0,0 @@
-3.4 The MV of each individual stock refers to the average of month-end MVs for the past 12 months of any review period.
-3.5 An eligible stock must be among those that constitute the top 90 percentile of the total MV of the Universe.
M3removedTurnover Requirement
--- Turnover Requirement (2011-11-25_468de86b)
+++ /dev/null
@@ -1,4 +0,0 @@
-3.6 For each stock, its turnover in the past 24 months is to be assessed for eight quarterly sub-periods.
-3.7 The turnover requirement adopts a scoring approach and the details are as follows: (a) For each quarterly sub-period, a stock will be regarded as passing the turnover requirement in that period if it is among the top 90 percentile of the aggregate market turnover of the Universe.
-(b) Two points will be assigned to each “pass” achieved over the latest four sub-periods whereas one point will be assigned to those attained over the former four sub-periods.
-3.8 The highest score for turnover requirement is 12 points. Stocks should obtain at least 8 points to meet the turnover requirement.
M3removedListing History Requirement
--- Listing History Requirement (2011-11-25_468de86b)
+++ /dev/null
@@ -1,2 +0,0 @@
-3.9 To ensure that constituents of the HSI are representative stocks of the Hong Kong stock market and meet the MV and turnover requirements in 3.3 – 3.8, a stock should normally be listed for at least 24 months before becoming eligible for inclusion in the HSI.
-3.10 For a stock with a very large MV but with a listing history of less than 24 months, it may be considered for inclusion in the HSI if it satisfies the more stringent MV requirement detailed below:
M3removedMV Rank by Review Cut-off Date
--- MV Rank by Review Cut-off Date (2011-11-25_468de86b)
+++ /dev/null
@@ -1,7 +0,0 @@
-Top 5 3 Months 6 – 15 6 Months 16 – 20 12 Months 21 – 25 18 Months Below 25 24 Months
-Note: MV Rank refers to:
-I) average of month-end MVs since the listing date for stocks listed for less than 12 months; and
-II) average of month-end MVs of the past 12 months for stocks listed for more than 12 months.
-3.11 For a stock with a listing history of less than or equal to 12 months, it will pass the turnover requirement if it is among the top 90 percentile of the aggregate market turnover of the Universe for each quarterly sub-period.
-For a stock with a listing history of over 12 months, it will pass the turnover requirement should its score reach the minimum requirement, i.e. eight points, in 3.7 – 3.8.
-3.12 The listing history should be defined as the period between the listing date and the next review meeting date (both dates inclusive).
M3removedSpecial Requirement for H-share Companies
--- Special Requirement for H-share Companies (2011-11-25_468de86b)
+++ /dev/null
@@ -1,15 +0,0 @@
-3.13 The H-shares of Mainland China enterprises listed on HKEx will not be selected unless the company has no unlisted share capital.
-Principles of Final Selection
-3.14 Companies meeting all eligibility requirements will be considered for inclusion in the HSI.
-3.15 Principles that are applied in assessing potential constituents include: (a) MV and turnover rank of stocks; (b) representation of the relevant sub-sector within the HSI directly reflecting that of the market; and (c) financial performance.
-3.16 The final selection will be decided by the Advisory Committee after the above criteria have been taken into consideration.
-Number of Constituents
-3.17 Before September 2006, HSI was managed with a fixed number of constituents – i.e. 33.
-3.18 In September 2006, it was decided that in order to ensure that the HSI remains representative of the Hong Kong stock market, the number of constituents would be permitted to gradually increase to a maximum of 50.
-3.19 There is no fixed schedule for reaching 50 constituents.
-3.20 Before reaching 50, the number of outgoing constituents will not exceed the number of incoming ones.
-3.21 After reaching 50, new additions and deletions of the HSI will be of equal number and the number of constituents will remain fixed.
-3.22 The ratio of H-shares vs. non-H shares in terms of constituent number in the HSI will not be fixed. However, in deciding on constituent changes, HSIL will endeavour to maintain a balanced combination which best reflects the performance of the Hong Kong stock market as a whole.
-4 Sub-Indexes
-4.1 The HSI has four sub-indexes, namely Finance, Utilities, Properties, and Commerce and Industry sub-indexes.
-4.2 Each of the HSI constituents belongs to one of the sub-indexes based on the industry classification of the Hang Seng Industry Classification System (“HSICS”) and with the following mapping table.
--- /dev/null
+++ Front matter (2021-08-23_e883d2d1)
@@ -0,0 +1,4 @@
+This methodology document should be read in conjunction with the Index Methodology General Guide on Hang Seng Indexes Co Ltd (“HSIL”)’s website.
+Readers are reminded that there might be exceptions in the index handling to the below general approach in some special situations and HSIL reserves the right to determine the most appropriate handling.
+Objective: To serve as a benchmark to reflect the overall performance of the Hong Kong stock market.
+Universe: Constituents of the Hang Seng Composite LargeCap & MidCap Index as of index review data cut-off date; excluding Foreign Companies, Stapled Securities and Biotech Companies with stock names end with marker “B”.
M3addedEligibility Criteria
--- /dev/null
+++ Eligibility Criteria (2021-08-23_e883d2d1)
@@ -0,0 +1 @@
+Market Value Hang Seng Composite LargeCap & MidCap Index constituents Requirements: Geographical Greater China Companies Requirements: Listing History At least 3 months Requirements: (counting up to the index review meeting date) Turnover Velocity Test for Tradable Indexes Requirements: (minimum velocity of 0.1% on monthly basis, details please refer to the Index Methodology General Guide)
M4addedConstituent Selection
M4addedSelection by Industry Group
--- /dev/null
+++ Selection by Industry Group (2021-08-23_e883d2d1)
@@ -0,0 +1 @@
+Eligible candidates will be assigned to one of the below Industry Groups according to their industry classification of the Hang Seng Industry Classification System (“HSICS”):
M4addedHSICS
--- /dev/null
+++ HSICS (2021-08-23_e883d2d1)
@@ -0,0 +1,4 @@
+Industry Group Code Industry 1 50 Financials 2 70 Information Technology 23 Consumer Discretionary 3 25 Consumer Staples 4 60 Properties & Construction 35 Telecommunications 5 40 Utilities 6 28 Healthcare 00 Energy 05 Materials 7 10 Industrials 80 Conglomerates The combination of the Industry Groups will be reviewed at least every two years.
+Considerations for Deciding the Constituent Number for Each Industry Group The number of constituents in each Industry Group will be decided by the below principles: Target to cover at least 50%, in terms of market capitalisation, for each Industry Group;
+Characteristics of the Industry Group which include the distribution of the listed companies in terms of their size and number; and The Industry Group weighting in the index compared to the market.
+The index will also maintain 20 to 25 constituents that are classified as “Hong Kong” Companies and this number will be reviewed at least every two years.
M4addedPrinciples of Constituent Selection
--- /dev/null
+++ Principles of Constituent Selection (2021-08-23_e883d2d1)
@@ -0,0 +1,7 @@
+In general, eligible securities will be evaluated within each Industry Group according to the following considerations:
+Representativeness; Market capitalisation; Turnover; and Financial performance.
+Cross-Industry Group constituent changes might take place to restore sectoral balance.
+In each review, there may or may not be constituent additions or deletions.
+Existing constituents failing to meet the eligibility requirements may be considered for removal.
+Even if existing constituents fulfil all the eligibility requirements, the smallest constituents and the constituents with lowest liquidity within the Industry Group may be considered for removal from the HSI subject to the availability of appropriate replacement candidates.
+The final constituent selection will be decided by the HSI Advisory Committee after taking the above into consideration.
M4addedNumber of Constituents
--- /dev/null
+++ Number of Constituents (2021-08-23_e883d2d1)
@@ -0,0 +1 @@
+Target to reach 80 by mid-2022 and ultimately fixed at 100.
M1addedSub-indexes
--- /dev/null
+++ Sub-indexes (2021-08-23_e883d2d1)
@@ -0,0 +1,2 @@
+There are four sub-indexes: Finance, Utilities, Properties, and Commerce and Industry.
+Constituents will be assigned to one of the sub-indexes based on the industry classification of the HSICS and the following mapping table:
M1addedHSICS Sub-index Code Industry
--- /dev/null
+++ HSICS Sub-index Code Industry (2021-08-23_e883d2d1)
@@ -0,0 +1 @@
+Finance 50 Financials Utilities 40 Utilities Properties 60 Properties & Construction Commerce 00 Energy & Industry 05 Materials 10 Industrials 23 Consumer Discretionary 25 Consumer Staples 28 Healthcare 35 Telecommunications 70 Information Technology 80 Conglomerates
M1addedOther Information
--- /dev/null
+++ Other Information (2021-08-23_e883d2d1)
@@ -0,0 +1 @@
+Review Quarterly (Data cut-off end-March / June / September / Frequency: December) Rebalancing Quarterly Frequency: Weighting: Freefloat-adjusted market capitalisation weighted Capping: 8% on individual securities Launch Date: 24 November 1969 Base Date: 31 July 1964 Base Value: 100 Currency: Hong Kong Dollars Dissemination Real-time at every two seconds Frequency: Vendor Codes: Refinitiv Bloomberg ET-Net Infocast PI .HSI HSI HSI HSI Gross TRI .HSIDV HSIRH - - Net TRI .HSIDVN HSINH - - For more information on the terms used in this document and calculation details, please refer to the Index Methodology General Guide on HSIL’s website.
otheraddedAmendment History
--- /dev/null
+++ Amendment History (2021-08-23_e883d2d1)
@@ -0,0 +1,13 @@
+Date Description
+1.0 September 2011 First Issue
+1.1 November 2013 Updated description of index universe for constituent eligibility
+1.2 January 2015 Updated inclusion of REITs in the universe Updated index capping
+1.3 April 2016
+Updated treatment to trading suspension Updated index universe
+1.4 June 2016 Updated index capping Added exclusion of companies with High Shareholding Concentration
+1.5 September 2019 Updated description of index universe Updated the industry mapping table for the HSI subindexes to reflect changes in the Hang Seng Industry Classification System
+1.6 June 2020
+Added weighted voting rights and/ or secondary-listed Greater China companies to the universe and their weighting cap
+1.7 September 2020 Updated constituent number Updated vendor codes
+2.0 May 2021
+Changed constituent selection method by Industry Groups Shortened the listing history requirement to 3 months Updated the constituent number to 100 Aligned the weighting cap on individual constituent to 8% Updated format of the Index Methodology
HSI_cover_26Jul11p.1● minor · removed
The 2011 HSI management-methodology cover/table-of-contents section and its initial rules were removed in the 2021 document set; the updated version contains no corresponding section text. The deleted passage covered HSI overview and governance responsibilities, plus the beginning of the constituent eligibility/universe rules.Rated minor: The removed section contains substantive index rules, including the HSI universe definition and the 15% individual weighting cap, which fall within M1-M5 eligibility/identity/weighting matters. Because the updated supplied text is absent rather than a replacement rule, the change is classified based on deletion of these stated rules; no effective date is stated.Model-written, for reference only.Open old p.1 ↗
Market Value (“MV”) Requirementp.5● minor · removed
The updated methodology removes the standalone market value eligibility rules. These previously defined individual stock MV as the average of month-end values over the past 12 months and required eligible stocks to fall within the top 90th percentile of the universe by total MV.Rated minor: The change removes the explicit 12-month average MV definition and the top-90th-percentile eligibility threshold. This is an M3 eligibility rule change, which is capped at minor; the provided text does not show that the rule was merely relocated.Model-written, for reference only.Open old p.5 ↗
Turnover Requirementp.5● minor · removed
The updated methodology removes the standalone 24-month turnover test. Previously, each stock was assessed over eight quarterly sub-periods, received weighted points for ranking in the top 90th percentile of universe turnover, and needed at least 8 of 12 points to pass. The updated text contains no corresponding turnover requirement section.Rated minor: Removal of the turnover eligibility criterion changes which securities may satisfy index requirements. This is an M3 eligibility change, so the materiality is minor; no explicit effective date is stated.Model-written, for reference only.Open old p.5 ↗
Listing History Requirementp.6● minor · removed
The updated methodology removes the dedicated listing-history eligibility rule. The prior text normally required at least 24 months of listing before HSI inclusion, while allowing very large market-cap stocks with less history to be considered under a stricter market-cap requirement.Rated minor: The change removes an eligibility condition and its large-cap exception, affecting which securities may be considered for inclusion. Because this concerns M3 eligibility rather than calculation, review schedule, buffers, or corporate-action treatment, the ceiling is minor.Model-written, for reference only.Open old p.6 ↗
MV Rank by Review Cut-off Datep.6● minor · removed
The prior section linking market-value rank bands to required listing histories, defining MV rank averages, and setting turnover treatment by listing history has been removed. The updated version contains no corresponding text in the supplied section, so those explicit eligibility/turnover rules are no longer present here.Rated minor: The removed text states substantive eligibility-related rules: MV-rank-based listing-history requirements, the MV averaging basis, and turnover pass conditions based on listing history. These affect which securities qualify and therefore fall under M3 eligibility; the supplied updated text does not restate them elsewhere, so the change is minor rather than editorial.Model-written, for reference only.Open old p.6 ↗
Special Requirement for H-share Companiesp.6● minor · removed
The prior H-share eligibility restriction was removed: Mainland China enterprises' H-shares listed on HKEx are no longer stated to be ineligible unless the company has no unlisted share capital. The provided updated excerpt contains no replacement text for the removed section.Rated minor: The change removes an eligibility condition affecting whether H-share companies can be selected as HSI constituents. This is an M3 eligibility/universe rule, so the materiality ceiling is minor; no effective date is stated.Model-written, for reference only.Open old p.6 ↗
HSIp.8● editorial · removed
The prior HSI section at pages 8-8 is absent in the updated version, but neither the supplied previous text nor updated text contains any rule wording to compare. Therefore no substantive index-rule change can be identified from the provided evidence.Rated editorial: The change record indicates only that a section was removed, with empty previous text and no updated text. No identity, universe, eligibility, selection, weighting, or other operative rule is present to evaluate, so under the materiality rule this is an editorial-level structural/removal artifact rather than a substantive rule change.Model-written, for reference only.Open old p.8 ↗
HSICSp.8● minor · removed
The entire HSICS section was removed in the updated document, including the Hang Seng Industry Classification System sub-index industry code table. The deleted passage also contained other rules on quarterly reviews, calculation, rebalancing, dissemination, contacts, and disclaimer.Rated minor: The removed rule is the HSICS mapping of sub-index codes to industries, which concerns index identity/classification under M1 and could affect how users identify or interpret index industry categories. No replacement text or effective date is provided.Model-written, for reference only.Open old p.8 ↗
Front matterp.1● minor · added
The updated methodology adds front-matter language defining the index objective and its starting universe. The universe is limited to Hang Seng Composite LargeCap & MidCap Index constituents at the review data cut-off, excluding Foreign Companies, Stapled Securities, and Biotech Companies whose stock names end with marker “B”. It also notes that HSIL may make exceptions in special situations.Rated minor: A substantive index-universe rule was added, including the source universe and three exclusions, which affects the set of securities eligible for the index. Under the materiality framework, universe and eligibility changes are capped at minor. No explicit effective date is stated in the text.Model-written, for reference only.Open p.1 ↗
Eligibility Criteriap.1● minor · added
The updated methodology adds an Eligibility Criteria section. It restricts eligible securities to Hang Seng Composite LargeCap and MidCap Index constituents that are Greater China companies, require at least three months of listing history counted to the index review meeting date, and satisfy a monthly turnover velocity minimum of 0.1%.Rated minor: The change adds eligibility rules governing universe membership, geography, minimum listing history, and a numeric turnover-velocity threshold. These affect which securities may qualify and fall under M3, so the materiality is minor.Model-written, for reference only.Open p.1 ↗
Constituent Selectionp.2● minor · added
Section Constituent Selection addedRated minor: a rule, number or sentence was added or removed (set by a text rule, without a model reading).Open p.2 ↗
Selection by Industry Groupp.2● minor · added
The updated methodology adds a provision stating that eligible candidates are assigned to Industry Groups based on their Hang Seng Industry Classification System (HSICS) classification. The excerpt introduces an industry-based classification step but does not list the Industry Groups or any selection thresholds in the supplied text.Rated minor: The change adds a rule governing how eligible candidates are classified for selection by industry group, affecting the M4 selection framework. Because the substance concerns candidate selection rather than calculation, review timing, buffers, corporate actions, or governance, the ceiling is minor.Model-written, for reference only.Open p.2 ↗
HSICSp.2● minor · added
The updated methodology adds an HSICS section defining the Industry Group taxonomy and principles for determining constituent numbers by Industry Group. It introduces a minimum 50% market-capitalisation coverage target for each Industry Group and requires maintaining 20–25 constituents classified as “Hong Kong” Companies, with reviews at least every two years.Rated minor: The newly added section introduces substantive Industry Group allocation principles, a numeric 50% coverage target, and a 20–25 constituent requirement for Hong Kong Companies. These affect selection and the set/number of eligible or selected constituents, so under M1–M5 the materiality is minor. No explicit effective date is stated.Model-written, for reference only.Open p.2 ↗
Principles of Constituent Selectionp.3● minor · added
A new 'Principles of Constituent Selection' section was added. It specifies that eligible securities are assessed by Industry Group based on representativeness, market capitalisation, turnover, and financial performance; permits cross-Industry Group changes for sectoral balance; and states that eligible but smallest or least-liquid constituents may still be removed if suitable replacements exist.Rated minor: The added provisions identify constituent-selection criteria and circumstances under which existing constituents may be removed despite satisfying eligibility requirements. This changes expectations for constituent selection/removal, an M4 item, so the ceiling is minor. No explicit effective date is stated in the provided text.Model-written, for reference only.Open p.3 ↗
Number of Constituentsp.3● minor · added
The updated methodology adds a constituent-count policy: the index targets 80 constituents by mid-2022 and will ultimately be fixed at 100. This introduces a numerical selection/universe-size rule that was absent from the prior section.Rated minor: The changed rule is the number of constituents, an M4 selection/constitution-size requirement, with new numeric targets of 80 and 100. Because M1-M5 changes are capped at minor, the materiality is minor; no explicit effective date is stated.Model-written, for reference only.Open p.3 ↗
Sub-indexesp.4● minor · added
The updated methodology adds a Sub-indexes section identifying four sub-indexes: Finance, Utilities, Properties, and Commerce and Industry. It also states that constituents are assigned to one sub-index according to their HSICS industry classification and the mapping table.Rated minor: The added rule defines the set of sub-indexes and the basis for assigning constituents to them, affecting index identity/classification. This is an M1-related substantive change and therefore minor; no effective date is stated.Model-written, for reference only.Open p.4 ↗
HSICS Sub-index Code Industryp.4● minor · added
The updated methodology adds an HSICS sub-index code-to-industry mapping table. It assigns numeric codes to industry categories, including codes 00, 05, 10, 23, 25, 28, 35, 40, 50, 60, 70, and 80, and lists Conglomerates without a code in the supplied text.Rated minor: The change adds explicit HSICS industry classification codes and labels that were absent from the previous version. This affects the identity/classification framework used for index constituents and falls within M1, so the materiality is minor.Model-written, for reference only.Open p.4 ↗
Other Informationp.5● minor · added
A new “Other Information” summary section was added, disclosing quarterly reviews with quarter-end data cut-offs, quarterly rebalancing, freefloat-adjusted market-cap weighting, an 8% individual security cap, launch/base data, dissemination frequency, and vendor codes. Because the section was absent in the prior version and states index-level characteristics including weighting and capping, the addition is substantive for index users.Rated minor: The added text introduces disclosed rules and index characteristics, notably freefloat-adjusted market-capitalisation weighting and an 8% individual-security cap, which fall within M1-M5 identity/universe/weighting-related matters, so the ceiling is minor. No explicit effective date is stated.Model-written, for reference only.Open p.5 ↗
Amendment Historyp.6● editorial · added
An Amendment History section was added, documenting prior methodology issues and revisions from September 2011 through May 2021. It is a historical disclosure log rather than a new operative index rule in this change.Rated editorial: The change adds governance/disclosure content: an amendment history describing past methodology changes. No new operative rule, threshold, trigger, or effective date is introduced by this section itself; under M10, disclosure-only changes are editorial unless they alter notice or consultation obligations.Model-written, for reference only.Open p.6 ↗
Disclaimerp.7● editorial · added
A new disclaimer page was added, stating that the document's information is for reference only, is not warranted as accurate or complete, does not constitute professional advice, and may change without notice. It also includes a 2021 copyright notice.Rated editorial: The addition is a governance/disclosure disclaimer and copyright notice rather than an index methodology rule. It does not alter index identity, universe, eligibility, selection, weighting, reviews, corporate actions, or calculation, and it does not establish a notice period or consultation obligation.Model-written, for reference only.Open p.7 ↗
Edition steps (4)
Item ▾Kind ▾
?
Search
is:majoris:minoris:editorial one grade
m:M3 an outline item (M1–M10)
kind:addedkind:removedkind:movedkind:modified
p:81 or p:80-90 a page or pages
"exact phrase" words in this order
-word leave out changes with this word
Grades
●Major: a rule changed in the review schedule, buffers, corporate actions or calculation (M6–M9)
●Minor: a rule changed in identity, universe, eligibility, selection or weighting (M1–M5), or a governance change to notice periods or consultation (M10)
●Editorial: no rule changed: wording, layout, numbering, or other governance text (M10)
The disclaimer was rewritten and expanded. It retains the reference-only, no-warranty, no-liability, and change-without-notice language, but replaces generic professional-advice guidance with investment-risk language, advice against relying solely on the document, independent investment-advice recommendations, and a new disclosure concerning HSBC Group conflicts of interest and related safeguards. Show in redline
otherOtherAmendment History
●
The amendment-history entry for version 2.3 is reformatted by inserting the heading “Amendment History” and moving “Date Description” onto a separate line. No index methodology rule, date, threshold, or historical amendment description is changed. Show in redline
M6Review and rebalance scheduleOther Information
●
The vendor-code table adds WIND as a data vendor and lists WIND codes for the Price Index (.HSI -> HSI.HI), Gross Total Return Index (.HSIDV/HSIRH -> HSIRH.HI), and Net Total Return Index (.HSIDVN/HSINH -> HSINH.HI). Review/rebalancing frequency, weighting, capping, dates, currency, and dissemination frequency are unchanged. Show in redline
M4Selection and constituent countHSICS
●
Editorial change: wording only, no rule changed. Show in redline
M4Selection and constituent countSelection by Industry Group
●
The updated section adds the HSICS industry-group mapping and explicit rules for setting constituent counts by industry group, including a target of at least 50% market-cap coverage per group, industry characteristics and index-versus-market weighting considerations, and a minimum of 20 constituents classified as “Hong Kong” Companies. It also requires reviews of the industry-group combination and Hong Kong constituent minimum at least every two years. Show in redline
otherOtherFront matter
●
The HSI universe exclusion for Specialist Technology Companies changes the required stock-name marker from “PC” to “P”. This alters the eligibility screen for securities classified as Specialist Technology Companies. Show in redline
The amendment history adds version 2.3, dated July 2023. It records that Primary-listed Foreign Companies were added to the index universe with weight capping, and that the cap on the number of “Hong Kong” constituents was removed, effective from the November 2023 index review. Show in redline
M6Review and rebalance scheduleOther Information
●
The capping rule was changed from a single 8% cap on every constituent to differentiated caps based on foreign-company status: non-foreign companies remain capped at 8% individually, while foreign companies are capped at 4% individually and 10% in aggregate. This affects expected constituent weights and index calculation outcomes. Show in redline
M4Selection and constituent countHSICS
●
The required number of constituents classified as “Hong Kong” Companies changes from a fixed range of 20 to 25 to a minimum of 20 with no stated upper cap. The biennial review requirement for this number remains unchanged. Show in redline
M3Eligibility screensEligibility Criteria
●
The eligibility criteria section removes the separate "Greater China Companies" geographical requirement. All other stated criteria—LargeCap/MidCap constituent status, at least three months' listing history, and the monthly turnover velocity test—remain unchanged. Show in redline
The index universe exclusion was narrowed from all Foreign Companies to “secondarylisted Foreign Companies.” Other listed exclusions and the stated objective remain unchanged. Show in redline
The disclaimer is substantively unchanged. The only edit updates the copyright year from 2021 to 2023. Show in redline
otherOtherAmendment History
●
The amendment history adds two later methodology updates. September 2022 adds a profitability consideration for candidate financial-performance assessment, while May 2023 records exclusion of Specialist Technology Companies from the index universe and fixes the constituent number at 100. Show in redline
M4Selection and constituent countNumber of Constituents
●
The constituent-count expansion language was updated. The prior interim target of reaching 80 constituents by mid-2022 was removed; the current text states that the number is fixed at 100 while expansion is still in progress. Show in redline
M4Selection and constituent countPrinciples of Constituent Selection
●
The constituent-selection criterion for financial performance now expressly includes profitability. The other selection and removal principles remain unchanged. Show in redline
The index universe exclusion list is expanded. In addition to Foreign Companies, Stapled Securities, and Biotech Companies marked “B”, Specialist Technology Companies whose stock names end with the marker “PC” are now excluded from eligibility. Show in redline
The updated methodology adds front-matter language defining the index objective and its starting universe. The universe is limited to Hang Seng Composite LargeCap & MidCap Index constituents at the review data cut-off, excluding Foreign Companies, Stapled Securities, and Biotech Companies whose stock names end with marker “B”. It also notes that HSIL may make exceptions in special situations. Show in redline
M1Identity, objective, classificationHSICS
●
The entire HSICS section was removed in the updated document, including the Hang Seng Industry Classification System sub-index industry code table. The deleted passage also contained other rules on quarterly reviews, calculation, rebalancing, dissemination, contacts, and disclaimer. Show in redline
M1Identity, objective, classificationHSI
●
The prior HSI section at pages 8-8 is absent in the updated version, but neither the supplied previous text nor updated text contains any rule wording to compare. Therefore no substantive index-rule change can be identified from the provided evidence. Show in redline
M3Eligibility screensSpecial Requirement for H-share Companies
●
The prior H-share eligibility restriction was removed: Mainland China enterprises' H-shares listed on HKEx are no longer stated to be ineligible unless the company has no unlisted share capital. The provided updated excerpt contains no replacement text for the removed section. Show in redline
M3Eligibility screensMV Rank by Review Cut-off Date
●
The prior section linking market-value rank bands to required listing histories, defining MV rank averages, and setting turnover treatment by listing history has been removed. The updated version contains no corresponding text in the supplied section, so those explicit eligibility/turnover rules are no longer present here. Show in redline
M3Eligibility screensListing History Requirement
●
The updated methodology removes the dedicated listing-history eligibility rule. The prior text normally required at least 24 months of listing before HSI inclusion, while allowing very large market-cap stocks with less history to be considered under a stricter market-cap requirement. Show in redline
M3Eligibility screensTurnover Requirement
●
The updated methodology removes the standalone 24-month turnover test. Previously, each stock was assessed over eight quarterly sub-periods, received weighted points for ranking in the top 90th percentile of universe turnover, and needed at least 8 of 12 points to pass. The updated text contains no corresponding turnover requirement section. Show in redline
otherOtherDisclaimer
●
A new disclaimer page was added, stating that the document's information is for reference only, is not warranted as accurate or complete, does not constitute professional advice, and may change without notice. It also includes a 2021 copyright notice. Show in redline
M3Eligibility screensMarket Value (“MV”) Requirement
●
The updated methodology removes the standalone market value eligibility rules. These previously defined individual stock MV as the average of month-end values over the past 12 months and required eligible stocks to fall within the top 90th percentile of the universe by total MV. Show in redline
otherOtherAmendment History
●
An Amendment History section was added, documenting prior methodology issues and revisions from September 2011 through May 2021. It is a historical disclosure log rather than a new operative index rule in this change. Show in redline
M1Identity, objective, classificationOther Information
●
A new “Other Information” summary section was added, disclosing quarterly reviews with quarter-end data cut-offs, quarterly rebalancing, freefloat-adjusted market-cap weighting, an 8% individual security cap, launch/base data, dissemination frequency, and vendor codes. Because the section was absent in the prior version and states index-level characteristics including weighting and capping, the addition is substantive for index users. Show in redline
M1Identity, objective, classificationHSICS Sub-index Code Industry
●
The updated methodology adds an HSICS sub-index code-to-industry mapping table. It assigns numeric codes to industry categories, including codes 00, 05, 10, 23, 25, 28, 35, 40, 50, 60, 70, and 80, and lists Conglomerates without a code in the supplied text. Show in redline
M1Identity, objective, classificationSub-indexes
●
The updated methodology adds a Sub-indexes section identifying four sub-indexes: Finance, Utilities, Properties, and Commerce and Industry. It also states that constituents are assigned to one sub-index according to their HSICS industry classification and the mapping table. Show in redline
M4Selection and constituent countNumber of Constituents
●
The updated methodology adds a constituent-count policy: the index targets 80 constituents by mid-2022 and will ultimately be fixed at 100. This introduces a numerical selection/universe-size rule that was absent from the prior section. Show in redline
M4Selection and constituent countPrinciples of Constituent Selection
●
A new 'Principles of Constituent Selection' section was added. It specifies that eligible securities are assessed by Industry Group based on representativeness, market capitalisation, turnover, and financial performance; permits cross-Industry Group changes for sectoral balance; and states that eligible but smallest or least-liquid constituents may still be removed if suitable replacements exist. Show in redline
M4Selection and constituent countHSICS
●
The updated methodology adds an HSICS section defining the Industry Group taxonomy and principles for determining constituent numbers by Industry Group. It introduces a minimum 50% market-capitalisation coverage target for each Industry Group and requires maintaining 20–25 constituents classified as “Hong Kong” Companies, with reviews at least every two years. Show in redline
M4Selection and constituent countSelection by Industry Group
●
The updated methodology adds a provision stating that eligible candidates are assigned to Industry Groups based on their Hang Seng Industry Classification System (HSICS) classification. The excerpt introduces an industry-based classification step but does not list the Industry Groups or any selection thresholds in the supplied text. Show in redline
M4Selection and constituent countConstituent Selection
The updated methodology adds an Eligibility Criteria section. It restricts eligible securities to Hang Seng Composite LargeCap and MidCap Index constituents that are Greater China companies, require at least three months of listing history counted to the index review meeting date, and satisfy a monthly turnover velocity minimum of 0.1%. Show in redline
otherOtherHSI_cover_26Jul11
●
The 2011 HSI management-methodology cover/table-of-contents section and its initial rules were removed in the 2021 document set; the updated version contains no corresponding section text. The deleted passage covered HSI overview and governance responsibilities, plus the beginning of the constituent eligibility/universe rules. Show in redline