--- title: "Hang Seng China A Industry Top Index" description: "Hang Seng China A Industry Top Index is maintained by Hang Seng Indexes and covers top China A-share stocks by industry. How it weights its constituents." canonical: https://www.getswoopr.com/stocks/indexes/hang-seng-china-a-industry-top/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Hang Seng China A Industry Top Index: What It Measures and How It Is Built ## Direct Answer > The Hang Seng China A Industry Top Index is a rule-based measurement of top China A-share stocks by industry, maintained by Hang Seng Indexes. Like every index it owns nothing: it is a number produced by applying a published weighting formula to a selected list of companies, revised on a schedule the provider sets. ## What this index covers The Hang Seng China A Industry Top Index covers top China A-share stocks by industry, within the Hong Kong market. Hang Seng Indexes defines which securities are eligible, how they are selected from that pool, and how much each one contributes to the published number. The index name does not state a fixed company count, so the number of constituents follows the eligibility rules rather than a target. ## How constituents are weighted Freefloat adjusted market value weighted with a 10% cap on individual stocks. It is a price index with no adjustment for cash dividends, and capping factors are recalculated quarterly. The weighting method is the single biggest driver of how an index behaves. Two indexes covering the same market can diverge for years purely because they weight differently, which is why comparing index levels without knowing the method tells you very little. ## What qualifies for inclusion The universe is A shares on the Shanghai and Shenzhen exchanges that are on the A300 list (the top 300 by twelve month average A share market value after excluding the lowest 10th percentile by turnover and ST, *ST and S shares). Stocks are classified by Hang Seng industry and the top five per industry by a combined score are selected, up to a maximum of 60. Eligibility rules are the part of an index most readers never look at and the part that decides what it can possibly measure. A screen that excludes a whole sector, or admits only one listing venue, shapes the result far more than any day of trading does. ## How long a listing must exist first A stock that switched its industry classification within the past two years does not qualify for the combined ranking. A seasoning rule is why a large new listing does not appear in an index the week it starts trading. It is a deliberate lag, and it means an index can under-represent a fast-growing part of the market for months at a time. ## When the membership is revised Reviewed annually with a data cut off at the end of June, effective the next trading day after the first Friday of September. Buffer zone: existing constituents ranked lower than 7th in an industry are removed and non-constituents ranked 3rd or above are included. One reserve stock per industry is kept. Reconstitution is the one date an index changes shape by design rather than by price. Funds tracking it have to trade toward the new membership, which is why the schedule matters to anyone holding the tracker rather than only to the provider. ## The rule that surprises people Selection uses a blended score of 50% company wide market value rank, 30% net profit rank and 20% revenue rank rather than size alone, and market value counts A, B, H and unlisted shares. The constituent count varies because an industry with fewer than five stocks contributes all of them. ## References - [Hang Seng Indexes: Hang Seng Indexes Company, For Managing the Hang Seng China A Industry Top Index (index methodology)](https://origin-www.hsi.com.hk/static/uploads/contents/en/dl_centre/methodologies/IM_chinaindustrytope.pdf), as published 2024. Every rule described on this page is taken from this document. ## Current Hang Seng China A Industry Top Index constituents Hang Seng Indexes publishes and licenses the Hang Seng China A Industry Top Index constituent list. Swoopr does not republish it here. The provider's own page is the authoritative source for current membership and weights. [Hang Seng Indexes: official Hang Seng China A Industry Top Index page](https://www.hsi.com.hk/eng/indexes/all-indexes) ## Related reading - [All stock market indexes](https://www.getswoopr.com/stocks/indexes/): how indexes are built, weighted and revised. - [Asia-Pacific indexes](https://www.getswoopr.com/stocks/indexes/asia-pacific/): others covering the same region. - [Index concentration](https://www.getswoopr.com/technical-analysis/market-concentration/index-concentration/): measuring how much of an index sits in its largest holdings. - [Index rebalancing and inclusion effects](https://www.getswoopr.com/stocks/corporate-actions-catalysts/index-rebalancing-and-inclusion-effects/): what happens to a stock when index membership changes. ## Frequently Asked Questions ### Who maintains the Hang Seng China A Industry Top Index? Hang Seng Indexes maintains the Hang Seng China A Industry Top Index and publishes the methodology document that defines its eligibility and weighting rules. ### What does the Hang Seng China A Industry Top Index measure? It measures top China A-share stocks by industry. The index is a calculated number applying a weighting formula to a selected list of companies, and it holds nothing itself. ### Where can I see the current Hang Seng China A Industry Top Index constituents? Hang Seng Indexes publishes the current constituent list. Swoopr does not republish it, because index providers license constituent data and Swoopr holds no such licence. ## About the author The [Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/) writes Swoopr Investment's educational library, covering market structure, analysis methods and the mechanics behind the numbers investors read every day. Our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/) set out how this content is produced, reviewed and fixed when it is wrong.