Selection Criteria For The HSI Constituent Stocks
HSI constituent stocks are selected with the use of extensive analysis, together with external consultation. To be qualified for selection, a company:
- must be among those that comprise top 90% of the total market value of all ordinary shares;
- must be among those that comprise top 90% of the total turnover on the Stock Exchange of Hong Kong Limited "SEHK" (香港交易所);
- should have a listing history of 24 months or meet the requirements of the following Guidelines:
Guidelines for Handling Large-cap Stocks Listed for Less than 24 Months
For a newly listed large-cap stock, the minimum listing time required for inclusion in the stock universe for the HSI review is as follows:
| Average MV Rank at Time of Review | Minimum Listing History |
|---|---|
| Top 5 | 3 Months |
| 6–15 | 6 Months |
| 16–20 | 12 Months |
| 21–25 | 18 Months |
| Below 25 | 24 Months |
Among the eligible candidates, final selections are based on their:
- market capitalisation and turnover rankings;
- representation of the respective sub-sectors within HSI; and
- financial performance.
Read more about this topic: Hang Seng
Famous quotes containing the words selection, criteria and/or stocks:
“Historians will have to face the fact that natural selection determined the evolution of cultures in the same manner as it did that of species.”
—Konrad Lorenz (1903–1989)
“The Hacker Ethic: Access to computers—and anything which might teach you something about the way the world works—should be unlimited and total.
Always yield to the Hands-On Imperative!
All information should be free.
Mistrust authority—promote decentralization.
Hackers should be judged by their hacking, not bogus criteria such as degrees, age, race, or position.
You can create art and beauty on a computer.
Computers can change your life for the better.”
—Steven Levy, U.S. writer. Hackers, ch. 2, “The Hacker Ethic,” pp. 27-33, Anchor Press, Doubleday (1984)
“So it is with books, for the most part: they work no redemption on us. The bookseller might certainly know that his customers are in no respect better for the purchase and consumption of his wares. The volume is dear at a dollar, and after to reading to weariness the lettered backs, we leave the shop with a sigh, and learn, as I did without surprise of a surly bank director, that in bank parlors they estimate all stocks of this kind as rubbish.”
—Ralph Waldo Emerson (1803–1882)