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 has aimed to include a total of 60 companies, though the actual number can fluctuate 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.
What stocks are on the Hang Seng?
This searchable table of Hang Seng constituents is checked daily.
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.
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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. See full bio
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Zoe has written 156 Finder guides across topics including:
Ceri Stanaway is a researcher, writer and editor with more than 15 years’ experience, including a long stint at independent publisher Which?. She’s helped people find the best products and services, and avoid the pitfalls, across topics ranging from broadband to insurance. Outside of work, you can often find her sampling the fares in local cafes. See full bio
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