Founded in 1984, the Hang Seng index is made up of the Hong Kong stock market’s largest companies by market capitalisation. If you want to get exposure to this key global market, the Hang Seng index could be a good starting point. Here’s what you need to know about how to invest in the Hang Seng.
What is the Hang Seng?
The Hang Seng is a stock market index that tracks the performance of some of the biggest, blue-chip companies listed on the Hong Kong Stock Exchange. It comprises 4 sub-indexes: finance, industry, real estate investment trusts and utilities. The index aims to include a total of 60 companies, though the actual number can fluctuate slightly around this target.
Can I invest in the Hong Kong stock market from the UK?
Yes. These days, many share-trading platforms and brokers offer access to Hong Kong stock markets. One of the most straightforward ways to gain exposure to the Hong Kong stock market is to invest in index or tracker funds that mirror the performance of the Hang Seng index.
The Hang Seng comprises some of the biggest companies in China. If you’re looking to expand your investment portfolio globally, it can be a good place to start in terms of gaining exposure to Chinese stocks. It also includes some major global technology firms.
However, the Hang Seng can be volatile. This makes it pretty popular with some investors, who are willing to trade higher risk with higher reward. But if you’re more risk averse, there may be more stable international markets to consider first.
Top companies from the Hang Seng to invest in
There are some well-known international brands on the Hang Seng index, including mobile phone manufacturer Xiaomi, laptop producer Lenovo and online retail giant Alibaba, alongside a number of Chinese firms you may not have heard of.
Regardless of whether you’ve heard of a company, it’s important to do your due diligence by thoroughly researching the prospects of any company you’re thinking of investing in.
How do I invest in the Hang Seng from the UK
There are 2 main ways to invest in the Hang Seng. You can buy shares in each individual company (or a selection of them). Alternatively, you can invest in an ETF or index fund that tracks the performance of the Hang Seng. To do either, you’ll need to follow the following steps:
Open a share trading account. In order to invest in a Hang Seng fund, you’ll need to open a trading account with a broker or platform. Keep in mind that some index funds may only be available on certain brokerages or platforms. The providers in our comparison table below let you invest in Worldwide shares. We’ve also listed some funds that are on the Hang Seng Stock Exchange.
Choose your stocks, or select a Hang Seng fund. Some index funds track the performance of all Hang Seng stocks. Others may only track a certain number of stocks or be weighted more towards specific stocks. You should select the fund that best suits your investment goals.
Deposit funds. You’ll need to deposit funds into your account to begin trading. Some brokers may charge you deposit fees, or you may need to pay a forex fee in order for your pounds to be converted into US dollars.
Buy the fund or shares. Once your money has been deposited, you can then buy the Hang Seng index fund or individual shares. You’ll generally pay a small annual fee to invest in an ETF or index fund. Investing in shares will incur trading fees, often for every company you buy shares in.
As of 10 October 2022, the following companies are on the Hang Seng index (by market capitalisation):
Tencent Holdings Limited
Alibaba Group Holding Limited
China Construction Bank
China Mobile Ltd
Meituan
AIA Group Limited
HSBC Holdings plc
JD.com, Inc.
CNOOC Ltd
NetEase, Inc
HKEx Limited
Baidu, Inc
Industrial and Commercial Bank of China
Ping An Insurance
BOC Hong Kong (Holdings) Ltd
Budweiser Brewing Company APAC Limited
Sun Hung Kai Properties Limited
ANTA Sports Products Limited
China Overseas Land & Investment Limited
Hang Seng Bank Ltd
Nongfu Spring Co., Ltd.
China Resources Land Limited
Xiaomi Corporation
MTR Corporation Ltd
Bank of China Ltd
CITIC Pacific Ltd
BYD Co. Ltd
Galaxy Entertainment Group Ltd.
WuXi Biologics (Cayman) Inc.
China Resources Beer
CK Asset Holdings Limited
CK Hutchison Holdings Limited
Li Ning Company Limited
Sands China Ltd
China Merchants Bank
Chow Tai Fook
CLP Holdings Limited
Techtronic Industries
Longfor Group Holdings Limited
SMIC
Hong Kong and China Gas Company Limited
Mengniu Dairy
Wharf Real Estate Investment Company Limited
ENN Energy Holdings Limited
The Link REIT
China Unicom (Hong Kong) Limited
Henderson Land Development Company Limited
Geely Auto
Cheung Kong Infrastructure Holdings Limited
Shenzhou International
CSPC Pharmaceutical Group Ltd
Sinopec Corp
Haidilao
Orient Overseas (International) Ltd
Power Assets Holdings Limited
Sunny Optical
China Shenhua Energy
Zhongsheng Group Holdings Limited
China Life
PetroChina Company Limited
Xinyi Solar Holdings Limited
Sino Biopharm
Hansoh Pharmaceutical Group
Lenovo Group
WH Group
Hang Lung Properties Limited
China Hongqiao Group Ltd
New World Development Company Limited
Alibaba Health Information Technology Limited
Xinyi Glass Holdings Limited
Country Garden
CG Services
Hengan International Group Co. Ltd
Is there a Hang Seng ETF?
Yes. Investing in an exchange traded fund (ETF) is one of the easiest ways to get exposure to the Hang Seng index. ETFs are virtual portfolios of stocks that are created to reflect the behaviour of an underlying index, such as the Hang Seng.
Many Hang Seng ETFs will track the performance of the full Hang Seng index, though you may also find some ETFs that track only a subset – such as Hang Seng technology companies.
Hang Seng ETFs
Hang Seng Investment Index Funds Series III – Hang Seng FTSE China 50 ETF
Hang Seng China A Share ETF Series – Hang Seng China A Industry Top Index ETF
Hang Seng Investment Index Funds Series – Hang Seng CEI ETF
Amundi Hang Seng HK 35 Index ETF
Hang Seng TECH Index ETF
What are the Hang Seng trading hours?
You can trade stocks on the Hong Kong stock market from 9:30am to 4pm Monday to Friday Hong Kong standard time (that’s 1:30am to 8am in GMT, so you’ll need to be an early bird to get the worm). On some public holidays, the Hong Kong stock market is closed between midday and 1pm.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Investing in the Hang Seng is a popular way to gain exposure to Chinese investments. You can either invest in ETFs or funds that track the index or choose shares in individual companies that are listed. Make sure you choose a broker that lets you trade international stocks, and check trading fees (including any extra ones for overseas trades) before you begin.
Frequently asked questions
The most straightforward way to invest in the Hang Seng is through an investment fund, such as an ETF, that tracks the performance of stocks in the index. You can also buy shares in each individual company in the Hang Seng, but this could be a lot of effort and cost a fair bit in trading fees.
Like the Hang Seng, the Hang Seng Composite is an index that replicates the performance of stocks on the Hong Kong stock exchange. It’s much bigger though, comprising several hundred companies (around 95% of the market), as opposed to around 60 companies on the Hang Seng index.
The Hang Seng Indexes Company Limited (HSI) is owned by Hang Seng Bank, which is part of the HSBC Group.
The core opening hours of the Hong Kong Securities Market are 9.30am to 4pm Hong Kong Time (HKT). It’s 7 hours ahead of the UK in the summer (BST) and 8 hours ahead in the winter (GMT).
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Zoe was a senior writer at Finder specialising in investment and banking, and during this time, she joined the Women in FinTech Powerlist 2022. She is currently a senior money writer at Be Clever With Your Cash. Zoe has a BA in English literature and a Diploma for Financial Advisers. She has several years of experience in writing about all things personal finance. Zoe has a particular love for spreadsheets, having also worked as a management accountant. In her spare time, you’ll find Zoe skating at her local ice rink.
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We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
