The Hang Seng Composite Industry Index – Consumer Staples (HSSCCS) tracks the performance of companies within the consumer staples sector that are listed on the Hong Kong Stock Exchange. It is a subset of the Hang Seng Composite Index (HSCI) index and comprises businesses engaged in essential goods and services, including food and beverages, household products, personal care items, and supermarket chains.
Hang Seng Composite Index Price & Chart
Unlike consumer discretionary stocks, which rely on economic cycles, consumer staples companies tend to remain stable during market downturns. Demand for their products remains relatively constant regardless of economic conditions, making this sector a more defensive investment choice.
The index includes companies such as Mengniu Dairy, Want Want China, WH Group, and Tsingtao Brew. The index was launched in July 2023. As of January 2025, the index is made up of 32 companies, offering a broad perspective of the consumer staples landscape in Hong Kong and the broader Chinese market.
Hang Seng Composite Industry Index – Consumer Staples Performance
Despite a rally between September and October 2024, which helped it close higher for the year, the index looks to be in somewhat of a downtrend. It is still well above its all-time lows, but the year-to-date move (as of January 30, 2025), suggests the downside is continuing for now.
| Period | Total Return |
|---|---|
| 1-Year Return | +0.23% |
| 3-Year Return | – |
| 5-Year Return | – |
| 10-Year Return | – |
Hang Seng Composite Industry Index – Consumer Staples Top 10 Companies
The index is reviewed half yearly.
| Company | Weighting |
|---|---|
| Mengniu Dairy | 10.13% |
| Tsingtao Brew | 9.90% |
| WH Group | 9.68% |
| Nongfu Spring | 9.61% |
| China Res Beer | 9.48% |
| China Feihe | 6.23% |
| Want Want China | 6.03% |
| Tingyi | 5.59% |
| Hengan Internatinal | 4.38% |
| Bud APAC | 4.17% |
Hong Kong Consumer Staples Forecast
The Bull Argument: Investors and analysts that remain optimistic about the consumer staples sector, may note that ongoing urbanisation and robust income growth in China are driving sustained demand for everyday necessities. In addition, companies in this space benefit from deep-rooted brand loyalty and consistent cash flows, while the increasing consumer focus on healthier lifestyle choices bolsters firms offering specialised or premium products. The stability of essential goods makes this sector a defensive option for investors, as demand for these products tends to remain steady even when other areas of the market are more volatile.
The Bear Argument: Conversely, the sector still faces headwinds. The recent tariffs imposed by the Trump administration on Chinese imports could impact production and sourcing costs for companies reliant on raw materials and goods. Additionally, ongoing challenges such as supply chain disruptions and escalating raw material expenses could pressure profit margins. Increased competition from private-label brands may also erode the market share of established companies while evolving regulatory requirements on food safety and environmental standards could further impact operational costs and distribution methods.
Our View: While generally, consumer staples stocks offer an opportunity for investors looking for stability and defensive exposure, the Hang Seng Composite Consumer Staples Index has yet to show that strength since its inception. Even so, it should be somewhat resilient in economic downturns. Consistent demand for consumer staples makes stocks in the sector an attractive option for those seeking steady returns over time.
Who Should Invest in Hong Kong Consumer Staples Stocks?
For investors looking to gain exposure to this sector, ETFs such as the Global X MSCI China Consumer Staples ETF (CHIS) will provide some exposure to the names listed in the Hang Seng Composite Industry Index – Consumer Staples.
This index is particularly well-suited for:
Defensive investors: Since consumer staples are less affected by economic downturns, the sector can be a solid choice for those prioritising stability.
Income-focused investors: Many consumer staples companies pay consistent dividends, making them appealing for income-generating portfolios.
China/Hong Kong-focused investors: As Hong Kong serves as a key gateway to the broader Chinese market, this index provides exposure to the region’s evolving consumer trends.
