The Hang Seng Index has risen 29% year-to-date, potentially achieving its best annual performance since 2017

As of last Friday (12th), the Hang Seng Index has accumulated a year-to-date increase of 29%, likely achieving its best annual performance in the past decade since a 36% growth in 2017. The Hang Seng Index Company stated that record capital inflows from the Stock Connect, optimism about AI development, and factors such as interest rate cuts have boosted market sentiment, with the index rising 18% in 2024 and continuing its upward trend this year.

The momentum this year mainly comes from the financial sector, information technology sector, and consumer discretionary sector. All 12 industries under the Hang Seng Industry Classification System (HSICS) recorded positive contributions. Among them, the financial sector contributed 2,389 points, accounting for 40% of the index's increase; the information technology sector and consumer discretionary sector contributed 22% and 16% to the index's increase, respectively. The three sectors together accounted for 79% of the index's increase.

At the constituent stock level, Alibaba (09988.HK) has become the largest contributor this year, driving the Hang Seng Index's increase by 1,332 points or 23% of the overall increase. Following closely are HSBC (00005.HK) and Tencent (00700.HK), contributing approximately 14% and 13% to the increase, respectively.

Together with AIA (01299.HK), SMIC (00981.HK), Xiaomi (01810.HK), CCB (00939.HK), HKEX (00388.HK), Ping An (02318.HK), and Zijin Mining (02899.HK), as of the 12th of this month, the combined impact of the top ten contributing constituent stocks to the Hang Seng Index was 4,569 points, accounting for 77% of the year-to-date increase