Understanding the Hang Seng Index: Key Facts You Need to Know

Jakarta, Pintu News – The Hang Seng Index is one of the most well-known stock indices in Asia, particularly as a key benchmark of the Hong Kong stock market. This article will take a closer look at what the Hang Seng index is, how the price-to-earnings (PE) ratio of the index is understood, as well as the trading hours of the Hang Seng index which is important for investors and traders to know.

What is the Hang Seng Index?

The Hang Seng Index (HSI) is the main stock market index in Hong Kong that reflects the price performance of the 50 largest companies listed on the Hong Kong Stock Exchange (HKEX).

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The index covers companies from various key sectors such as finance, property, industrial, and technology, making it an important indicator of the health of the Hong Kong economy and global investor sentiment towards Asian markets.

The index was first introduced in 1969 by Hang Seng Bank, with the aim of providing a general view of the Hong Kong stock market. The HSI is calculated based on the market capitalization of its constituent companies which has been adjusted by a free-float factor, so that larger companies have a greater weight in the index.

With its strong position, the Hang Seng Index is often used as a reference by global investors to make decisions in trading stocks and derivative products in the Asian region.

PE Ratio of Hang Seng Index

The price-to-earnings (PE) ratio of the Hang Seng Index measures the relative valuation of stocks in the index. This ratio is calculated by comparing the combined price of the stocks in the index to the total annual earnings of those companies. In other words, the PE reflects how much investors are willing to pay for every dollar of profit generated by the companies in the index.

The PE ratio can be an important indicator to assess whether the market is overvalued or undervalued. For example, if the Hang Seng’s PE ratio is higher than its historical average, it could indicate that the market may be overly optimistic, while a low PE ratio could mean that stocks are trading below their fair value.

However, like any other analytical tool, PE should be used in conjunction with other fundamental and technical indicators for more accurate investment decision-making.

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Hang Seng Index opens at what time?

The Hang Seng Index follows the trading hours of the Hong Kong Stock Exchange (HKEX). The regular trading session is divided into two parts: the morning session and the afternoon session. The morning session starts at 09:30 and ends at 12:00 Hong Kong time (GMT+8), while the afternoon session restarts at 13:00 and closes at 16:00.

Outside of these hours, there is also a pre-opening session starting at 09:00 to 09:30, where market participants can enter orders before trading officially opens.

These operating times are especially important for international investors to keep in mind, in order to adapt their trading strategies to market volatility and economic news release schedules that have a direct impact on index movements.

Overall, the Hang Seng index is a leading indicator reflecting the condition of the Hong Kong stock market and more broadly, the East Asian economy. By understanding the definition, PE ratio values, and trading hours of this index, investors can make wiser and more strategic investment decisions.

Amidst global market dynamics, following the movements of the Hang Seng Index is important for both local and international investors.

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FAQ

What are the companies included in the Hang Seng Index?

The Hang Seng Index includes 50 of Hong Kong’s largest and most liquid companies, such as HSBC, Tencent, and Alibaba, representing various major industrial sectors.

Why is the PE ratio of the Hang Seng index important to investors?

The PE ratio helps investors assess whether stocks in the index are overvalued or undervalued, which could be a signal to buy or sell.

How does Hang Seng trading time affect trading strategies?

As the Hang Seng follows the Asian time zone (GMT+8), international traders need to be mindful of the time difference in order to respond to market movements in a timely manner.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Capital. What is the Hang Seng index? Accessed on December 1, 2025
• Investopedia. Hang Seng Index (HSI): Hong Kong’s Stock Market Benchmark Explained. Accessed on December 1, 2025