:1. A valuation of the Hang Seng Index relative to the stock HSI of less than 11 times is an undervalued area for the HSI; a valuation of more than 18 times in 16% of cases is an overvalued area for the HSI.
2. This is also reflected in the Hang Seng Index: the current dividend yield of the Hang Seng Index is about 4%, while the current dividend yield of the CSI 300 Index is 2.05%.
3. HSI futures can be said to have basically no threshold. As long as you can afford a lot of contracts, you can participate. Therefore, only about $3,000 is needed to participate in the big HSI futures, and about $1,500 is needed to participate in the small HSI futures. Of course, in order to control the risk, you need to increase the capital appropriately.
4, if you look at Hong Kong stocks from the perspective of global allocation, the weighted stocks are actually the most attractive valuation, especially the profitability and growth of banks and insurance are higher than overseas, while the valuation is significantly lower than overseas.
5. A healthy index is more representative of the market. The Hang Seng Index, released in 1969, selects the 50 largest and most liquid companies in the Hong Kong market. The total market capitalization of the index accounts for 55% of the Hong Kong market and 52% of the trading volume. The Hang Seng Index has a long history and strong market representation. It is able to represent the Hong Kong market more comprehensively. The Hang Seng China Enterprises Index was released in 1994. Constituent stocks are selected from mainland Chinese enterprises listed in Hong Kong in the form of H-shares. The Top 50 Chinese Enterprises is selected from the perspective of market capitalization and liquidity, with a relatively narrow sample scope. It mainly reflects the performance of mainland Chinese companies.
6. The sectoral distribution of the Hang Seng Index is relatively balanced. In terms of industry distribution, the current industry structure of the Hang Seng Index is relatively balanced, covering 10 industries, with the financial sector weighted at 45.68%. The index includes not only traditional cyclical sectors such as finance and real estate, but also new economy sectors such as technology, information and consumption. However, as mainland enterprises listed in Hong Kong are mainly concentrated in some large state-owned financial enterprises, the sectoral distribution of the Hang Seng China Enterprises Index is relatively concentrated, with the latest weighting of the financial sector at 51%, making the index's financial attributes stronger. The weighting ratio of new economy sectors such as consumption, technology and medicine is significantly lower than that of the Hang Seng Index