The Hang Seng Composite Industry Index – Properties & Construction (HSSCPC) is designed to capture the performance of companies operating in the real estate and construction sectors listed on the Hong Kong Stock Exchange.
(HSSCPC) Hang Seng Composite Industry Index – Properties & Construction Price & Chart
The specialised index includes firms involved in property development, construction services, infrastructure projects, and related areas. It provides a focused lens on an industry that is crucial to urban development and economic growth in the region.
Companies in the properties and construction space often benefit from long-term demand driven by population growth, urbanisation, and government-led infrastructure initiatives. The index reflects the dynamics of both residential and commercial real estate markets, as well as the construction firms that support them.
The index was launched in July 2023 and currently holds 58 stocks.
Hang Seng Composite Industry Index – Properties & Construction Performance
Since the launch in July 223, the index has struggled. There have been a couple of spikes, notably one in September/October 2023 on the back of a Chinese economic stimulus package designed to boost the economy. However, it has since continued to edge lower (as of February 2025).
| Period | Total Return |
|---|---|
| 1-Year Return | +0.94% |
| 3-Year Return | – |
| 5-Year Return | – |
| 10-Year Return | – |
Hang Seng Composite Industry Index – Properties & Construction Top 10 Companies
The index is reviewed half yearly and rebalanced quarterly.
| Company | Weighting |
|---|---|
| SHK PPT | 9.95% |
| China Resources Land | 9.63% |
| CK Asset | 8.17% |
| China Overseas Land & Investment | 6.32% |
| Henderson Land | 4.56% |
| Wharf Real Estate Investment | 4.41% |
| China Communications Construction | 4.07% |
| Longfor Group | 3.27% |
| China Resources Mixc Lifestyle | 3.11% |
| China State Construction International | 3.07% |
Hong Kong/China Real Estate & Construction Forecast
The Bull Argument: Analysts at S&P Global said in their 2025 outlook for the Hong Kong property market that they have revised up their 2025 volume forecasts for Hong Kong primary residences on “potentially higher investment-driven homebuying demand.”Hong Kong’s home prices should stabilize next year after losing nearly 30% from the 2021 peak,” said the firm. “Easing mortgage rates and improving rental yields are positives for demand appetite.”
However, they cautioned that the “pain is not over for developers,” as they have “high inventories and will likely focus on destocking for years to come.”
Meanwhile, in November 2024, Yi Wang, who leads the China real estate team in Goldman Sachs Research, stated: “We are finally at an inflection point of the ongoing downward spiral in the housing market. This time is different from the previous piecemeal easing measures, in our view.”
The Bear Argument: On the flip side, global real estate services firm JLL said in a December 2025 article that Hong Kong’s real estate market faces continued challenges in 2025, as “oversupply and economic uncertainties persist across commercial and residential sectors.”
“In 2025, the market will still face oversupply issues and economic uncertainties,” said Cathie Chung, Senior Director of Research at JLL. “The economic and interest rate policies under the new US administration will significantly impact the housing and property investment markets.”
Our View:
The Hang Seng Composite Industry Index – Properties & Construction offers investors targeted exposure to a segment of Hong Kong and China’s economy. However, investors should be aware that the sector, especially in China, has experienced a slowdown for several years. As a result, significant risks remain—evidenced by high-profile incidents such as the collapse of Evergrande.
In 2021, the Chinese real estate firm began its financial collapse, with the company being ordered to liquidate by a Hong Kong court in January 2024. This event should serve as a reminder of the volatility and potential pitfalls. Investors should remain cautious and conduct thorough research.
Who Should Invest in Hong Kong/Chinese Properties & Construction Stocks?
While there are no ETFs tracking this index specifically, potential investors may want to look at the iShares MSCI Hong Kong ETF, with 14.25% of the fund’s holdings in the real estate management and development sector.
However, investors should always make sure the investment they choose is suited to their goals and characteristics. The Hong Kong/Chinese Real Estate & Construction sector is ideally suited for investors with specific interests, including:
Income-focused Investors: Many companies in the sector distribute dividends, appealing to those seeking regular income.
Regional Knowledge: For the reason explained in the Our View section, potential investors in the sector should have significant knowledge of the market in the region or conduct extensive research in order to understand the potential risks.
Regional Exposure: Those aiming to gain exposure to Hong Kong and China’s property market and the broader construction industry will find this index particularly relevant.
