Zhitong Finance App learned that on January 4, Hang Seng Index released the 2023 year-end market summary report. According to the report, as of December 29, 2023, the total asset management value of products passively tracking the Hang Seng Index series was about US$65.8 billion. Despite market adjustments in 2023, total asset management value increased by about 14.4% from the end of last year, which means net capital inflows into passively tracking the Hang Seng Index series of products. The total asset management value of exchange-traded products linked to the Hang Seng Index, Hang Seng China Enterprise Index and Hang Seng Technology Index increased to approximately US$20.9 billion (+6.1%), US$5.5 billion (+1.7%), and US$16.2 billion (+65.7%), respectively.

Hang Seng Indices said that in January 2023, under normal expectations, Hong Kong stocks will reach their highest point in the year. However, due to a number of factors, the market showed a downward trend for the rest of the year. In 2023, the Hang Seng Index (Hang Seng Index) and Hang Seng China Enterprise Index (China Index) recorded declines of 13.8% and 14.0% respectively. The Hang Seng Technology Index (HSIC) performed relatively well, falling 8.8%. In the mainland stock market, the Hang Seng A-share Industry Leading Index and the Hang Seng A-Share Connect 300 Index decreased by 6.0% and 11.6% respectively.

The Hang Seng Index Volatility Index and Hang Seng Index both rose to high levels during the year in March and August 2023, mainly due to factors such as the Fed's interest rate affecting the market atmosphere. Overall, market volatility for the whole year was lower than in 2022.

In the Hang Seng Composite Index, large stocks fell 12.9%, leading mid-cap stocks (-15.3%) and small-cap stocks (-24.7%). In the Hang Seng Composite Index's industry index, the energy sector rose 19.8% and once again became the best performing industry (2022: +17.3%), while the real estate and construction industry was the worst performing industry (-30.9%).

The Hang Seng Corporate Sustainability Index and the Hang Seng ESG 50 Index lead the Hang Seng Index by 5.5 and 3.5 percentage points, respectively. The Hang Seng Index ESG Index and Hang Seng China Index ESG Index added ESG elements to the Hang Seng Index and China Index respectively, outperforming their underlying indices by 1.7 and 3.7 percentage points.

The Hang Seng Shanghai Shenzhen Hong Kong Stock Connect Greater Bay Area Composite Index fell 15.8%. Among the regional, industry, theme and factor and strategy classification indices, the best performers were Shenzhen-Dongguan-Huizhou (-14.2%), IT (+4.5%), New Economy (-5.5%), and Innovation Select 50 (-11.9%).

In terms of thematic indices, Hang Seng Auto Themed Index (+7.7%) and Hang Seng China Metaverse Index (+5.1%) are the best performing indices among “Hong Kong Listed” and “Mainland Listed and Cross-Market” respectively.

In the Hang Seng Large and Medium Cap Single Factor Index series, the best performing index was the dividend rate (-10.8% for all); in the Hang Seng A Shares Single Factor Index series, the best performing indices had low volatility (-5.4% for all).

Listed in Hong Kong, China:

Key Indices

Hang Seng Index, Hang Seng China Enterprises Index and Hang Seng Technology Index

After falling 15.5% in 2022, the Hang Seng Index recorded a 13.8% decline in 2023.

The Hang Seng China Enterprises Index fell 14.0% throughout the year, similar to the performance of the Hang Seng Index.

The Hang Seng Technology Index fell 8.8% for the whole year, leading the Hang Seng Index by 5.0 percentage points.

Hang Seng Index constituent stocks

Of the 82 Hang Seng Index constituent stocks, only 26 rose in 2023. Ideal Auto - W (02015), Lenovo Group (00992), and CNPC (00857) performed the best, rising 91.5%, 70.4%, and 44.5% respectively this year.

Hang Seng Composite Index - Market Capitalization Index

In the market capitalization index of the Hang Seng Composite Index, large stocks performed better, recording a 12.9% decline.

After recording a 20.3% decline in 2022, small-cap stocks became the worst performing category this year, falling 24.7%.

Hang Seng Composite Index - Industry Index

The energy sector was the top performer (+19.8%), followed by telecommunications (+18.4%).

The real estate and construction sector was the industry with the biggest decline, falling 30.9% in 2023.

Mainland listing and cross-market:

Key Indices

Thematic Index

The Hang Seng China Metaverse Index recorded a 5.1% increase this year after falling 35.0% in 2022.

The Hang Seng A-share Defense Industry Index fell 7.4%.

ESG Index — Listed in Hong Kong, China

The ESG index series listed in Hong Kong, China is broadly divided into two categories: positive screening and integration of ESG factors.

In the ESG factor integration series, the Hang Seng Index ESG Index performed better (-10.3%).

In the positive screening series, the Hang Seng Sustainability Enterprise Index performed well (-8.4%).

ESG Index - Mainland Listings and Cross-Market

The Hang Seng Mainland and Hong Kong Sustainable Enterprises Index fell 6.7%.

The Hang Seng A-share Sustainable Enterprise Index fell 6.8%.

ESG Index - Thematic Indices

The Hang Seng Shanghai-Shenzhen-Hong Kong Connect Hydrogen Theme Index and the Hang Seng Shanghai, Shenzhen and Hong Kong Clean Energy Index recorded declines of 9.8% and 30.5% respectively.

The Hang Seng Shanghai, Shenzhen and Hong Kong Smart and Electric Vehicle Index fell 13.2%.