While the Hang Seng Index might not be a household name in Australia, it plays a big role in global investing. Whether you’re looking to broaden your international exposure or explore opportunities in Asia, it’s worth knowing how this index works and how to access it from home.
Hong Kong has long acted as a bridge between East and West, and its stock exchange reflects that international character. The Hang Seng Index offers a way to keep up with some of the biggest names in the region.
Covering everything from finance and property to tech and retail, the index captures many of the companies shaping business in the region. This guide breaks down what the Hang Seng Index is, why it matters, and how you can access it from Australia.
What is the Hang Seng Index?
The Hang Seng Index (HSI) is the most well-known benchmark for the Hong Kong Stock Exchange (HKEX). It features the biggest and most actively traded companies listed in Hong Kong, including giants in banking, real estate, tech, and utilities.
What makes the HSI stand out is that it includes not only Hong Kong-based firms. It also features many mainland Chinese companies, often called H-shares. On top of that, some global players that choose to list in Hong Kong are included too. This gives investors a broader look at what’s happening across Greater China.
Big names in the index include Tencent, HSBC, Alibaba, China Mobile, AIA Group, and Bank of China – household names with international reach.
A brief history of the HSI
The HSI was launched in 1969 by Hang Seng Bank as a way to measure the performance of the local economy. Back then, it focused on Hong Kong’s traditional blue-chip companies . But as Hong Kong evolved into a global financial hub, the index expanded to reflect that shift.
Today, it covers more than 60% of the HKEX by market capitalisation and includes companies from four broad categories: finance, utilities, properties, and commerce & industry. Recent years have seen more tech, healthcare, and consumer-focused businesses join the ranks, keeping the index relevant to modern investors.
How are companies selected?
To be included in the HSI, companies need to meet several key requirements:
- Size – Only the largest companies by market capitalisation are eligible.
- Liquidity – Their shares must be traded frequently.
- Sector mix – The index aims to represent a broad slice of the economy.
- Ongoing reviews – A committee reassesses the index quarterly and makes changes as needed.
This selection process keeps the index fresh and aligned with Hong Kong’s dynamic business environment.
Why might Australians want exposure to the HSI?
If your portfolio is heavy on Aussie or US shares , adding exposure to Hong Kong can help diversify your investments . The HSI connects you to some of Asia’s largest banks, insurers, developers, and tech giants, all in one place.
It’s also a way to gain indirect exposure to China’s economy without navigating the restrictions of mainland stock exchanges. Many HSI companies benefit from both local and international growth trends.
So if you’re looking to spread your risk and broaden your investment base, the Hang Seng Index could be a useful piece of the puzzle.
How can I invest in the Hang Seng Index from Australia?
1. Exchange-traded funds (ETFs)
ETFs are one of the easiest ways to access the Hang Seng Index. There are no ETFs on the ASX or US exchanges that track the Hang Seng Index specifically. However, several do provide exposure to its key companies through broader coverage of Hong Kong or Greater China-listed firms.
Here of some ETFs which might fit the bill. Note that none of these are recommendations from us – they're simply a few options which incorporate some of the Hang Seng Index.
- iShares Asia 50 ETF (ASX: IAA) – Provides exposure to 50 of the largest Asian companies, including several in the HSI.
- VanEck Vectors China New Economy ETF (ASX: CNEW) – Focuses on Chinese and Hong Kong-listed companies in consumer, tech, and healthcare sectors.
- KraneShares Hang Seng TECH Index ETF (NYSE: KTEC) – Focuses on tech-heavy Hang Seng-listed companies, offering a more growth-oriented slice of the broader index.
- iShares MSCI Hong Kong ETF (NYSE: EWH) – Covers a broad range of Hong Kong-listed companies, including many from the HSI.
- SPDR S&P Emerging Asia Pacific ETF (NYSE: GMF) – Offers regional diversification with exposure to Hong Kong-listed companies.
2. Managed funds
If you’d rather not do the picking yourself, managed funds could be a fit for you. Some funds available to Australian investors hold Hong Kong companies directly or invest in the broader Greater China region.
Examples include:
- Platinum Asia Fund – Covers a mix of Asian stocks, including Hong Kong.
- Fidelity Asia Fund – Focused on large-cap Asian businesses.
These funds are accessible through some investing platforms or via financial advisers .
3. Buying shares directly
For confident investors, it’s also possible to buy individual shares from the Hang Seng Index.
Here’s what to know:
- You’ll need an international broker that gives access to the HKEX.
- Shares trade in Hong Kong dollars (HKD), so keep an eye on exchange rates.
- You may need to report foreign income and capital gains on your tax return.
- Remember the time zone difference. Hong Kong markets open and close a few hours before Australia’s.
Direct investing gives you more control, but it also means doing more homework and being comfortable with international trading. If you're unsure of this process, it's worth speaking with a financial adviser.
What are the risks?
No investment is without risk, and the Hang Seng Index has a few unique ones to consider:
- Politics – Hong Kong’s evolving relationship with mainland China can affect investor confidence.
- Currency – The HKD/AUD exchange rate can work for or against you.
- Concentration – The index is tilted toward financial and property companies, so it’s not as balanced as some other indices.
- Regulation – Policy changes from Hong Kong or Beijing can quickly impact businesses.
Being aware of these factors can help you decide if the HSI suits your risk profile.
Finding your fit: where the Hang Seng Index might belong in your portfolio
The HSI includes some of the region’s most influential companies. For Australians who want to go beyond the ASX or Wall Street, it’s a chance to tap into Asia’s economic engine.
Whether you dip in via an ETF or take a more active role, the key is doing your research and knowing how it fits into your bigger financial picture.
And if you're not sure where to start, it’s always smart to check in with a financial adviser who can help tailor the right approach for you.
Happy investing!
