Why Hang Seng ETFs Surged 100% in a Year: Smart Hedge or Overhyped Investment?

Hang Sang Index tracks the performance of the largest companies listed on the Hong Kong Exchange, Hang Sang Index is considered as the main Index that tracks the overall performance in Hong Kong and China.

Some of the well-known companies in the index are Tencent, Alibaba, HSBC, and China Construction Bank. Investors in India can invest via ETF called HNGSNGBEES of Nippon mutual fund and MAHKTECH of Mirae Asset Mutual fund.

In the last one year, HNGSNGBEES ETF has risen by more than 70 percent and MAHKTECH ETF has risen by over 100 percent, Outperforming the Nifty 50 Index by a huge margin.

Reason For Rise in Hang Sang Index 

China’s government had lowered the interest rate to boost local consumption and the economy, they had a record trade surplus of  $1 Trillion in 2024. The  Chinese government believes that they can deliver a 5 percent GDP growth for 3 consecutive years including 2025.

Fears from trump tariffs have largely been subdued as the expected damage is assumed to be far less than expected earlier. The valuations at which Chinese stocks were trading were far less compared to global peers. Even after a 70 percent rise in the Index, it is still trading at a discount of 40 percent from its all-time high.

Also read: Indian billionaires lose over 20% of their net worth from 2025 high; what’s behind the fall?

Citi Bank on China

Citi Bank has downgraded the US Stock Market from overweight to neutral and Upgraded Chinese Markets. Chinese stocks look attractive even after the recent rally, given their advancements in AI and huge support from the government for economic growth.

Major Stock Holdings of Hang Sang ETF

The Nippon India Mutual Fund ETF, HNGSNGBEES, listed on Indian stock exchanges, has a well-diversified portfolio with its top 10 holdings comprising leading global companies.  Alibaba Group holds the largest share at 10.36 percent of the total portfolio weight, followed by HSBC Holdings at 8.33 percent and Tencent Holdings at 8.12 percent. 

Other key investments include Meituan (6.43 percent), Xiaomi Corp (6.22 percent), China Construction Bank (4.89 percent), AIA Group (4.47 percent), China Mobile (3.35 percent), Industrial and Commercial Bank of China (2.95 percent), and Hong Kong Exchange and Clearing (2.89 percent). These holdings reflect a strong presence in the financial, technology, and consumer sectors, providing broad exposure to the Hong.

Written By Abhishek Das

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