The make-up of Hong Kong's benchmark index, the Hang Seng, shows why most emerging markets are considered geared plays on global growth: they are packed with cyclical stocks.
In the Hang Seng's case, economically sensitive industries comprise around 80% of the index. In Western markets, cyclicals usually account for 60% of the market or less. Hong Kong's financials the biggest sector, accounting for almost 60% of the market oil, industrials, and technology firms are in the cyclical category.
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