CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.30% of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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

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
Table 1: Composition of the HK50 index by company weight (in descending order)
 

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:

Name in Platform: HK50_ecn / HK50_stp
Leverage ESMA - 1:20
Leverage PRO – 1:50
Trade hours (GMT+3) – Monday to Friday
Quotes: 04:00 – 22:00 (Friday 04:00 – 21:58)
Trade: 04:15 – 07:00, 08:00 – 11:30, 12:15 – 21:59 (Friday 04:15 – 07:00, 08:00 – 11:30, 12:15 – 21:58)
Commission – Based on type of account (ECN vs STP)
Currency – HKD
Contract size - 10
Tick size – 0.1
Tick value – 10
Volume step – 1
Min trade – 0.01
Max trade - 250

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Your capital is at risk.