Hang Seng Industry Classification System to revamp stock classification

It will sort stocks into 12 industries, 31 sectors, and 94 subsectors to reflect developments in Hong Kong and Chinese markets.

The Hang Seng Industry Classification System (HSICS) will be changed to classify stocks into 12 industries, 31 sectors, and 94 subsectors to reflect the latest developments in Hong Kong and mainland China stock markets, an announcement revealed. The changes will take effect on 9 September 2019.

HSICS currently classifies stocks into 11 industries, 31 sectors, and 89 subsectors.

All sectors and subsectors currently classified under ‘Consumer Goods’ or ‘Consumer Services’ will be reorganised and classified according to their business nature under the ‘Consumer Discretionary’, ‘Consumer Staples’ and ‘Healthcare’ industries.

Meanwhile, a new ‘Electronic Components’ subsector will also be added to the ‘Industrial Engineering’ sector under ‘Industrials’ industry. The definitions of the ‘Building Construction’, ‘Heavy Construction & Engineering’ and ‘Telecommunications Equipment’ subsectors will also be updated.