--- title: "Hang Seng Mainland Properties Index" description: "Hang Seng Mainland Properties Index is maintained by Hang Seng Indexes and covers China mainland property sector in Hong Kong. How it weights its constituents." canonical: https://www.getswoopr.com/stocks/indexes/hang-seng-mainland-properties/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Hang Seng Mainland Properties Index: What It Measures and How It Is Built ## Direct Answer > The Hang Seng Mainland Properties Index is a rule-based measurement of China mainland property sector in Hong Kong, 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 Mainland Properties Index covers China mainland property sector in Hong Kong, 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 cap that depends on the number of constituents, which is 15% when there are 8 to 14 constituents. It is a price index with no adjustment for cash dividends, and capping factors are updated 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 Hang Seng Composite Index constituents in the Hang Seng Properties sector that are Mainland companies, meaning Hong Kong listed with at least 50% of sales revenue, profit or assets from mainland China. Average daily turnover must be at least HKD20 million over six months, and the top 10 by twelve month average full market value are selected. 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 must have been listed for at least one month, counted from the listing date to the review cut off date, to be considered at a review. 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 half-yearly with data cut off at the end of June and December, effective the next trading day after the first Friday of September and March. Buffer zone: existing constituents ranked 13th or lower are removed and non-constituents ranked 8th or above are included. A two stock reserve list 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 The buffer zone only applies once the index has reached 10 constituents. A stock removed from the Hang Seng Composite Index leaves this index on the same removal schedule, and between reviews a removed stock is replaced from the reserve list. ## References - [Hang Seng Indexes: Hang Seng Indexes Company, For Managing the Hang Seng Sector Index Series (index methodology)](https://origin-www.hsi.com.hk/static/uploads/contents/en/dl_centre/methodologies/IM_hssise.pdf), as published 2023. Every rule described on this page is taken from this document. ## Current Hang Seng Mainland Properties Index constituents Hang Seng Indexes publishes and licenses the Hang Seng Mainland Properties 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 Mainland Properties 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 Mainland Properties Index? Hang Seng Indexes maintains the Hang Seng Mainland Properties Index and publishes the methodology document that defines its eligibility and weighting rules. ### What does the Hang Seng Mainland Properties Index measure? It measures China mainland property sector in Hong Kong. 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 Mainland Properties 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. 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