Hang Seng Indexes makes changes to industry classification system

Four new sub sectors have been established, for a total of 105 subsectors.

Hang Seng Indexes Company (HSIL) has changed its Hang Seng Industry Classification System (HSICS) based on feedback received on consultations between December 2023 and January 2024.

The new HSICS consists of 12 industries, 31 sectors, and 105 subsectors.

Notable changes include the splitting of e-commerce and internet services sub sectors under the information technology industry. 

A total of four new sub sectors were established: Internet Services and Infrastructure under teh Software & Services sector; Online Retailers under the Specialty Retail sector; Interactive Media and Services sub-sector under the Media & Entertainment sector; and Payment Services subsector under the Other Financials sector.

HSIL has also modified the definition of the Application Software subsector and the new Digital Solutions subsector. 

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Companies that provide application stacks and software models delivering through both onpremises and cloud will be moved into Application Software subsector under the new definition, HSIL said.

Proposed changes will be implemented in the index review for the period ended 30 June 2024. Any company reclassification and changes will be effective beginning the September 2024 index rebalancing.