HSICS: Hang Seng Industry Classification System (Hong Kong Stock Exchange)
The Hang Seng Industry Classification System (HSICS) is a comprehensive framework developed for the Hong Kong stock market. Maintained by the Hang Seng Indexes Company Limited, businesses are categorized in the sector from which they make most of their sales revenue. The HSICS is structured into three levels with Industries split into Sectors which are in turn split into Subsectors. The HSICS is reviewed annually, thereby staying relevant and helping to provide valuable insights into the Hong Kong market landscape.
Metadata
| Publisher type | Commercial |
| Publisher(s) | |
| Jurisdictions | Hong Kong |
Available versions
- Hang Seng Industry Classification System (HSICS) 2024 (Current)
- Hang Seng Industry Classification System (HSICS) 2023 (Legacy)
- Hang Seng Industry Classification System (HSICS) 2020 (Legacy)
- Hang Seng Industry Classification System (HSICS) 2019 (Legacy)
- Hang Seng Industry Classification System (HSICS) 2017 (Legacy)
- Hang Seng Industry Classification System (HSICS) 2016 (Legacy)
- Hang Seng Industry Classification System (HSICS) 2013 (Legacy)
- Hang Seng Industry Classification System (HSICS) 2006 (Legacy)
The HSICS is an industry classification system tailored for the Hong Kong and mainland China stock markets. Developed in response to the diverse range of companies listed across various industries in these markets, it addresses the demand for a detailed framework that captures stock performance across different sectors. Specific Hong-Kong listed companies or stocks classified under different sectors of the HSICS include Meituan - W (Consumer Discretionary), Tencent (Information Technology), ICBC (Financials), PetroChina (Energy), WH Group (Consumer Staples), Zigin Mining (Materials), China Overseas (Properties & Construction), among others.
To maintain consistency in a company's classification, the guidelines for the maintenance of the HSICS stipulate that once assigned to a sector, it will remain there unless a substantial change occurs in how the company generates its revenue (or, where applicable, its profit or assets). The industry classification of each listed company is determined using audited financial data from the most recent financial year as presented in the company’s annual report. Where necessary, information from other sources such as prospectuses or company announcements will also be considered. Moreover, the HSICS will be reviewed every year and changes (if any) will be according to market developments.
Its restricted geographical focus (on Hong Kong and mainland China stock markets) differentiates the HSICS from other commercial industrial classification systems like the Industry Classification Benchmark (ICB) which is used by stock exchanges across the world.
Versions
Hang Seng Industry Classification System (HSICS) 2024 (Current)
The Hang Seng Industry Classification System (HSICS) 2024 has been in effect since July 2024. Its release followed a public consultation that ran between December 2023 and January 2024.
Changes between HSICS 2023 and HSICS 2024
Following overwhelming support from interested parties during the public consultation for proposed changes, the E-Commerce and Internet Services subsector (code 702020) of HSICS 2023 was disaggregated into four separate subsectors (and placed in different industries) in HSICS 2024: Internet Services and Infrastructure (702025), Online Retailers (237060), Interactive Media and Services (235050), and Payment Services (503050). Moreover, the System Applications & IT Consulting subsector (702010) in the Information Technology industry of HSICS 2023 was redefined in HSICS 2024 as the Digital Solution Services subsector (702015) grouping firms offering technology solutions involving artificial intelligence and automation. Businesses offering other internet-related services (also grouped under the old System Applications & IT Consulting subsector) are now classified under the Internet Service and Infrastructure subsector.
Structure of HSICS 2024
HSICS 2024 is structured into three levels as follows:
Industries: 12 industries represented by two-digit numeric codes currently ranging from 00 (Energy) to 80 (conglomerates).
Sectors: 31 sectors represented by four-digit numeric codes.
Sub-sectors: 105 sub-sectors represented by six-digit numeric codes. This is the finest level of detail in the HSICS hierarchy.
The table below shows the subcategories of each of the 12 industries of HSICS 2024. The Consumer Discretionary industry (code 23) is the most detailed with 31 sub-sectors covering a wide range of areas, from manufacturers of automobiles and home appliances to book publishers and apparel retailers.
Industry Code | Industry Name | Number of Sectors | Number of Sub-sectors |
00 | Energy | 2 | 3 |
05 | Materials | 3 | 9 |
10 | Industrials | 3 | 14 |
23 | Consumer Discretionary | 7 | 31 |
25 | Consumer Staples | 3 | 11 |
28 | Healthcare | 2 | 6 |
35 | Telecommunications | 1 | 2 |
40 | Utilities | 1 | 5 |
50 | Financials | 3 | 7 |
60 | Properties & Construction | 2 | 8 |
70 | Information Technology | 3 | 8 |
80 | Conglomerates | 1 | 1 |
Total | 12 | 31 | 105 |
Resources
Hang Seng Industry Classification System (HSICS) 2023 (Legacy)
The Hang Seng Industry Classification System (HSICS) 2023 was in effect from September 2023 to September 2024.
Changes between HSICS 2020 and HSICS 2023
In HISCS 2023 six new subsectors were created while 12 others were redefined and/or renamed. Some of the new subsectors created are Medicine Distribution (281040) in the Healthcare Industry, Nuclear Energy (400050) in the Utilities industry and Semiconductor Equipment & Materials (703020) in the Information Technology industry. The definition of the Electronic Components subsector (101025) was updated to include the makers of "printed circuit boards" while the Animal Feeds (252030) subsector was broadened to accommodate the manufacturers of animal feed additives like antibiotics and hormones.
Structure of HSICS 2023
HSICS 2023 is structured into three levels as follows:
Industries: 12 industries represented by two-digit numeric codes.
Sectors: 31 sectors represented by four-digit numeric codes.
Sub-sectors: 102 sub-sectors represented by six-digit numeric codes.
Resources
Hang Seng Industry Classification System (HSICS) 2020 (Legacy)
HSICS 2020 was effective from September 2020 to September 2023.
Changes between HSICS 2019 and HSICS 2020
HSICS 2020 added two new subsectors which are Tobacco (251045) under the Consumer Staples industry and Chinese Medicines (281030) in the healthcare industry. Moreover, the definition of the Automotive Retailers (237010) subsector was expanded to include retailers of automotive accessories, equipment and parts.
Structure of HSICS 2020
HSICS 2020 is structured into three levels as follows:
Industries: 12 industries represented by two-digit numeric codes.
Sectors: 31 sectors represented by four-digit numeric codes.
Sub-sectors: 96 sub-sectors represented by six-digit numeric codes.
Resources
Hang Seng Industry Classification System (HSICS) 2019 (Legacy)
HSICS 2019 was effective from September 2019 to September 2020.
Changes between HSICS 2017 and HSICS 2019
The "Consumer Goods" and "Consumer Services" industries of HSICS 2018 were renamed and reorganized in HSICS 2019 as "Consumer Discretionary" and "Consumer Staples" respectively. A new Healthcare industry was also created covering the health-related subsectors in the former consumer goods and services industries.
Structure of HSICS 2019
HSICS 2019 was structured into three levels as follows:
Industries: 12 industries represented by two-digit numeric codes.
Sectors: 31 sectors represented by four-digit numeric codes.
Sub-sectors: 94 sub-sectors represented by six-digit numeric codes.
Resources
Hang Seng Industry Classification System (HSICS) 2017 (Legacy)
HSICS 2017 was effective between September 2017 and September 2019. [No changes were made the system in 2018 as see in the 2018 q4 report]
Changes between HSICS 2016 and HSICS 2017
In HSICS 2017, two new subsectors were added which are Education (305005) in the Consumer Services industry and Property Service and Management (601050) in the Properties & Construction industry.
Structure of HSICS 2017
HSICS 2017 was structured into three levels as follows:
Industries: 11 industries represented by two-digit numeric codes.
Sectors: 31 sectors represented by four-digit numeric codes.
Sub-sectors: 89 sub-sectors represented by six-digit numeric codes.
Resources
Hang Seng Industry Classification System (HSICS) 2016 (Legacy)
HSICS 2016 was effective between September 2016 and September 2017.
Changes between HSICS 2013 and HSICS 2016
In the Consumer Services industry of HSICS 2016, one new sector was created covering Healthcare Services (3045) along with one subsector for Medical & Aesthetic Services (304510).
Structure of HSICS 2016
HSICS 2016 was structured into three levels as follows:
Industries: 11 industries represented by two-digit numeric codes.
Sectors: 31 sectors represented by four-digit numeric codes.
Sub-sectors: 87 sub-sectors represented by six-digit numeric codes.
Resources
Hang Seng Industry Classification System (HSICS) 2013 (Legacy)
HSICS 2013 was effective between September 2013 and September 2016.
Changes between HSICS 2006 and HSICS 2013
HSICS 2013 added the subsector level to the hierarchy of the HSICS leading to a new coding format for each of the three classification levels. Two new sectors were created along with 86 new subsectors.
Structure of HSICS 2013
HSICS 2013 was structured into three levels as follows:
Industries: 11 industries represented by two-digit numeric codes.
Sectors: 30 sectors represented by four-digit numeric codes.
Sub-sectors: 86 sub-sectors represented by six-digit numeric codes.
Resources
Hang Seng Industry Classification System (HSICS) 2006 (Legacy)
HSICS 2006 was in effect from 2006 to 2013. The Hang Seng Industry Classification System (HSICS) was first launched in October 2001 and was previously known as the Hang Seng Stock Classification System (HSSCS). This first version operated from 2001 to August 2006 when it was updated to the structure stated below.
Structure of HSICS 2006
HSICS 2006 was structured into two levels as follows:
Industries: 11 industries represented by two-digit numeric codes.
Sectors: 28 sectors represented by three-digit numeric codes.
Resources
Where is it used?
Hang Seng Sector Indexes: The HSICS is principally used by the Hang Seng Index es company in selecting securities for inclusion in its various thematic and sector indexes. For example, the recently created Hang Seng Artificial Intelligence Theme Index, includes securities in the following HSICS industries: 23 (Consumer Discretionary), 28 (Healthcare), 35 (Telecommunications), 50 (Financials), and 70 (Information Technology). The Hang Seng Shipping Index includes securities in the core subsectors of 102010 (Shipping & Port Operation) and 102030 (Air Freight & Logistics) and 12 other non-core subsectors.
Investment Analysis and Portfolio Management: Like other proprietary industry classification codes, the HSICS is used by investors and analysts to segment the market and examine performance across certain sectors and analyze different issues of interest. For example, a report produced by PwC has looked at the adoption of the ESG reporting guidelines among Hong Kong listed companies categorized according to the HSICS.