Media365
The Hang Seng Index has risen 28 per cent this year, putting the 89-member benchmark on track for its best yearly performance since 2017, when it gained 36 per cent. The CSI 300 Index of the mainland’s yuan-denominated stocks has climbed 18 per cent, heading for the biggest gain since 2020.
The 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.
On Wednesday, the Hang Seng gauge fell 0.8 per cent to 25,649.71 as of 10.04am local time, while the Hang Seng Tech Index dropped 0.9 per cent. The CSI 300 added 0.1 per cent.
Hong Kong’s market will be closed Wednesday afternoon and all day Thursday, and China’s markets will be shut on Thursday and Friday.
