Now at Purple Trading: HK50 stock index
The HK50 stock index (often called the Hangseng) is one of the main indicators of the state of the Asian (and especially Chinese) economy. However, it is also characterized by relatively high volatility, which makes it a highly sought after instrument by intraday traders.That's why in Purple Trading we decided to introduce it to our clients who can now find it in their platforms alongside stalwarts such as DAX and NASDAQ.
What is the HK50 index
Sometimes also referred to as the HKG50, HSI or Hanseng, this weighted index consists of 50 companies’ stocks that are traded on the Hong Kong Stock Exchange and has been calculated since 1969. It is one of the leading economic indices of the state of the Asian economy, but due to its composition (the total market capitalisation of the companies listed in the HSI represents approximately 58% of the total market capitalisation of companies traded on the Hong Kong Stock Exchange) it is often considered a litmus test of the Chinese economy.
Given the economic growth of Hong Kong, and by extension China, the HK50 Index is a popular investment instrument for many traders. However, it is not a stand-alone trading instrument and so the HK50 can only be invested in only via the form of CFD instrument which we now have on offer.
HK50 index composition
Composition of the HK50 index by company weight (in descending order)
| Company name |
Sector |
| Tencent |
Information Technology |
| Ping An Insurance |
Financials |
| China Construction Bank |
Financials |
| Industrial and Commercial Bank of China |
Financials |
| China Mobile Limited |
Telecommunications |
| China Merchants Bank |
Financials |
| Bank of China |
Financials |
| Industrial Bank |
Financials |
| Kweichow Moutai |
Consumer Goods |
| Agricultural Bank of China |
Financials |
| China Minsheng Bank |
Financials |
| Sinopec |
Energy |
| Shanghai Pudong Development Bank |
Financials |
| Vanke |
Properties & Construction |
| China Life Insurance Co. |
Financials |
| Midea Group |
Consumer Goods |
| CITIC Securities |
Financials |
| Gree Electric |
Consumer Goods |
| Bank of Communications |
Financials |
| China Pacific Insurance |
Financials |
| CNOOC Limited |
Energy |
| Haitong Securities |
Financials |
| PetroChina |
Energy |
| China State Construction Co., Ltd. |
Properties & Construction |
| CRRC Corporation |
Industrials |
| China Shenhua Energy |
Energy |
| Hikvision |
Information Technology |
| Yangtze Power |
Utilities |
| Guotai Junan Securities |
Financials |
| Wuliangye Yibin |
Consumer Goods |
| SAIC Motor |
Consumer Goods |
| Ping An Bank |
Financials |
| China Overseas Land and Investment |
Properties & Construction |
| GF Securities [zh] |
Financials |
| China Railway Engineering Co., Ltd. |
Properties & Construction |
| China Everbright Bank |
Financials |
| China Railway Construction Co., Ltd. |
Properties & Construction |
| China Communications Construction Co., Ltd. |
Properties & Construction |
| China CITIC Bank |
Financials |
| China Shipbuilding Industry Co., Ltd. |
Industrials |
| CITIC Limited |
Conglomerates |
| China Unicom |
Telecommunications |
| PICC Property and Casualty |
Financials |
| China Telecom |
Telecommunications |
| Shenwan Hongyuan Group [zh] |
Financials |
| Guosen Securities |
Financials |
| Shanghai International Port |
Industrials |
| Postal Savings Bank of China |
Financials |
| People's Insurance Company of China |
Financials |
| Bank of Shanghai |
Financials |
How to trade the HK50 index
If you are going to trade Hanseng you should take note that this
index can be very volatile. The causes of volatility can be found in the fluctuations of the Chinese Yuan and in economic and political events within China. Macroeconomic events coming out of China generally play a very important role here, given that the index is dominated by Chinese companies. We, therefore, recommend
keeping an eye on developments in the Chinese markets when trading the HK50.
In addition, Purple Trading clients have the advantage of being able to trade stock indices, including the HK50, in the micro-lot orders and thus better manage the risks that arise from trading in volatile markets.
Symbol specification:
Symbol specification
| Name in Platform |
HK50_ecn / HK50_stp |
| Leverage ESMA |
1:10 |
| Leverage PRO |
1:50 |
| Trade hours (GMT+3) |
Monday to Friday
|
| Commission |
Based on type of account (ECN vs STP) |
| Currency |
HKD |
| Tick size |
0.01 |
| Tick value |
10 |
| Volume step |
1 |
| Min trade |
0.01 |
| Max trade |
250 |