February 16,$Hang Seng Index (800000.HK)$Limited (Hang Seng Index Company) announced the results of the Hang Seng Index series quarterly review for the year ended 31 December 2023. All changes will take effect on March 4, 2024.
The Hang Seng Index is an important indicator of the Hong Kong stock market. Changes in its constituent stocks directly reflect market trends and industry changes, and its adjustments will affect capital changes in index funds. Generally speaking, companies included in the Hang Seng Index may attract more investors to buy their shares, while excluded companies may face the risk of capital withdrawal.
The number of constituent stocks remained at 82
Specifically, the Hang Seng Index's constituent stocks have not changed, and the number of constituent stocks remains at 82. By the end of 2023, the total asset management value of products passively tracking the Hang Seng Index series was approximately US$65.8 billion.
In terms of other indices,$CHINA UNICOM (00762.HK)$Incorporated$Hang Seng H-Share Index ETF (02828.HK)$indices,$ZHONGSHENG HLDG (00881.HK)$Excluded, the number of constituent stocks remained at 50.
$TONGCHENGTRAVEL (00780.HK)$Incorporated$Hang Seng TECH Index (800700.HK)$,$GDS-SW (09698.HK)$removed;
$LIVZON PHARMA (01513.HK)$,$WUXI XDC (02268.HK)$Incorporated$Hang Seng Hong Kong-Listed Biotech Index (800805.HK)$,$GRANDPHARMA (00512.HK)$,$CANSINOBIO (06185.HK)$Removed.
Furthermore,$Hang Seng Composite Index (800701.HK)$The number of constituent stocks was reduced from 518 to 514, including 25 indices and excluding 29 shares, of which$REPT BATTERO (00666.HK)$,$SHIMAO GROUP (00813.HK)$,$CIFI HOLD GP (00884.HK)$,$Hisense Home Appliances Group (000921.SZ)$,$J&T EXPRESS-W (01519.HK)$When the company is incorporated,$GOME RETAIL (00493.HK)$,$DPC DASH (01405.HK)$,$FLOWING CLOUD (06610.HK)$Wait for it to be removed.
How has the Hang Seng Index performed in the past Dragon Year?
When announcing the Hang Seng Index quarterly inspection results, the Hang Seng Index's official website also recently published the Hang Seng Index's recent data analysis report.
According to the report, according to historical data, in the past 55 years, all four years of the Year of the Dragon had a positive start. This is the only Chinese zodiac sign that is 100% likely. Furthermore, the average increase on the first trading day of the Year of the Dragon was 1.7%, ranking third in the Chinese zodiac.
The Fed's interest rate outlook and the uncertainty of the mainland economy may continue to affect market sentiment for the time being, but historical data shows a different path. Over the past 55 years, the Hang Seng Index had an average return of 14% in the Year of the Dragon, ranking 7th in the Chinese Zodiac.
More importantly, an average double-digit increase is not something that can be achieved in just a year or two of extremely high returns. In fact, all four years in the Year of the Dragon had positive returns of 0.5% to 33.4%. Notably, in the last Dragon Year (2012), the Hang Seng Index rose 15%, and the easing plans of major central banks boosted market sentiment.
Looking ahead to the future market, many Hong Kong stock fund managers have expressed a relatively optimistic attitude about the Hong Kong stock market in 2024. It is widely believed that after a long period of decline, Hong Kong stocks currently have a high margin of safety. Especially in anticipation of improved liquidity, Hong Kong stocks are expected to experience a double-hit market of profit and valuation recovery, which is extremely positive.
Editor/Jeffrey