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Hong Kong stock market
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Hong Kong and mainland China stocks finish year with world-leading gains

City’s benchmark Hang Seng Index ends 2025 up 28 per cent, while the CSI 300 Index of mainland stocks rises 18 per cent

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A view of Exchange Square in Central, home of Hong Kong’s bourse operator, on Tuesday. Photo: Sun Yeung
Zhang Shidongin Shanghai
Both Hong Kong and mainland Chinese stocks closed out 2025 with strong annual gains for the second year in a row, as a tariff truce between Beijing and Washington mitigated geopolitical risks and China’s growth held up.

The Hang Seng Index finished the year with a 28 per cent increase as 2025 trading ended at noon on Wednesday – securing the 89-member benchmark its best yearly performance since gaining 36 per cent in 2017. The CSI 300 Index of the mainland’s yuan-denominated stocks climbed 18 per cent, the biggest gain since 2020.

Hong Kong’s market will reopen for trading on Friday, and China’s markets will be shut for the rest of the week.

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The year’s blistering gains caught most market participants flat-footed, with many global money managers and investment banks calling for caution about Chinese stocks at the start of the year. Investors turned more enthusiastic after Chinese start-up DeepSeek surprised the world with its artificial intelligence advances and the world’s two largest economies came to terms on the tariff issue.

The resilience of China’s growth also helped buoy sentiment. The mainland economy expanded by 5.2 per cent in the first three quarters of the year as exports defied the trade strife with the US and emerged as a bright spot. That put the annual growth target of around 5 per cent within reach. China’s yuan appreciated to its strongest level against the US dollar in two and a half years this week.

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Optimism has been growing that the run on stocks will stretch into 2026 after a high-level economic policy conference chaired by President Xi Jinping this month pledged to continue fiscal expansion and monetary easing in the new year. Investors also bet that the Federal Reserve will make at least two interest-rate cuts next year to support the US labour market, a move that will spur inflows to Asian markets and boost the appetite for risk assets.
Chinese President Xi Jinping speaks at the annual Central Economic Work Conference in Beijing on December 10, 2025. Photo: Xinhua
Chinese President Xi Jinping speaks at the annual Central Economic Work Conference in Beijing on December 10, 2025. Photo: Xinhua
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