Hang Seng index

The make-up of Hong Kong’s benchmark index, the Hang Seng, shows why most emerging markets are considered geared plays on global growth: they are packed with cyclical stocks.

In the Hang Seng’s case, economically sensitive industries comprise around 80% of the index. In Western markets, cyclicals usually account for 60% of the market or less. Hong Kong’s financials – the biggest sector, accounting for almost 60% of the market – oil, industrials, and technology firms are in the cyclical category.

Telecoms, utilities and consumer goods (made up of personal and household goods as well as food and drink companies) are defensives.

• See Tim Bennett’s video tutorial: What is an index?

 

Paul Hodges: house prices could fall 50% in 'Great Unwinding'

Merryn Somerset Webb interviews Paul Hodges about deflation, the global economy's 'Great Unwinding', and how Britain's house prices could halve.


Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.


23 January 1967: Milton Keynes founded

The most famous of Britain's garden cities, Milton Keynes in Buckinghamshire, was founded on this day in 1967, along an American-style grid pattern.