Hong Kong stocks closed (12.31) | At the end of 2025, the Hang Seng Index closed down 0.87%, and the whole year rose nearly 28% to the highest level since 2017

The Zhitong Finance App learned that on the closing day of the market, the atmosphere was light, and the three major indices all fell more than 1% intraday at one point. At the close, the Hang Seng Index fell 0.87% or 224.06 points to 25630.54 points, with a full-day turnover of HK$118.966 billion; the Hang Seng State-owned Enterprises Index fell 0.86% to 8913.68 points; and the Hang Seng Technology Index fell 1.12% to 5515.98 points. Looking at the whole year, Hong Kong stocks surged for two consecutive years. The Hang Seng Index surged 27.77% in 2025, the best performance since 2017; the National Index rose 22.27%; and the Hengke Index surged 23.45%, the best performance since its inception.

Galaxy Securities pointed out that looking ahead to 2026, both foreign capital and southbound capital are expected to continue to maintain a net inflow trend in the context of domestic and foreign monetary policy easing. Driven by favorable policies such as speeding up technological innovation, a new round of supply-side reforms, and expanding domestic demand, the profit level of Hong Kong stock listed companies is expected to substantially increase. The market will usher in a pattern of rising profits and valuations, and the overall Hong Kong stock market is expected to fluctuate upward.

Blue-chip stock performance

Baidu Group-SW (09888) rebounded against the market. At the close, it rose 1.39% to HK$131.5, with a turnover of HK$1,161 billion, contributing 3.55 points to the Hang Seng Index. Huaxin Securities pointed out that the company's new AI business continues to grow, and details were disclosed for the first time this season, showing confidence in the company's AI business, and is also expected to boost market confidence. As a traditional Internet giant that deployed AI technology earlier, the company's full-stack AI capabilities (models, applications, chips, intelligent driving, etc.) may not have received market attention.

In terms of other blue-chip stocks, Sunyu Optical Technology (02382) rose 1.16% to HK$65.55, contributing 0.87 points; Zijin Mining (02899) rose 0.85% to HK$35.66, contributing 2.87 points to the Hang Seng Index; Cinda Biotech (01801) fell 3.66% to HK$76.25, dragging down 7.58 points; and New Oriental-S (09901) fell 2.49% to HK$42.24, dragging down the Hang Seng Index by 1.35 points.

Popular sector aspects

On the market, most of the big tech stocks turned green. Alibaba fell more than 1%, Tencent fell 0.17%, and Baidu rose 1.39% against the market. Air travel was strong during the New Year's Day holiday, and the three major airlines collectively rose; the total box office of the Lunar New Year program broke 5 billion yuan, and film and television stocks continued to be active; individual metal stocks rose, Jiangxi Copper Co., Ltd. reached new highs; Zijin Mining and Zijin Gold International enjoyed success; gaming stocks and dairy stocks improved. On the other side, the auto subsidy policy has been implemented, and the trend of car stocks is divided; the trend of chip stocks, home appliance stocks, and pharmaceutical stocks is sluggish.

1. Film and television stocks were active. At the close, Damai Entertainment (01060) rose 5.56% to HK$0.95; Maoyan Entertainment (01896) rose 3.12% to HK$6.94.

According to data from Lighthouse Pro Edition, as of December 28, the total box office of 2025 Lunar New Year movies had broken the 5 billion yuan mark. It is worth mentioning that this achievement hit a box-office high in the past 8 years. Looking at the whole year, according to statistics from the National Film Administration, as of 14:30 on December 13, 2025, the total box office of domestic films had broken the 50 billion yuan mark, and the total number of movie viewers was 1,194 million. According to the China Post Securities Research Report, according to Culture China, a total of 8 films are currently scheduled to be screened during the Spring Festival in 2026. Overall, the distribution of subject types during the schedule was quite diverse, and it is expected that the box office will continue to have the characteristics of “high-quality content siphoning the box office” in the future.

2. The three major airlines collectively climbed higher. At the close, Eastern Airlines (00670) rose 4.92% to HK$5.33; China Southern Airlines (01055) rose 4.3% to HK$5.82; and Air China (00753) rose 3.36% to HK$7.07.

On December 30, the RMB continued its previous upward trend. After the offshore market rose above “7” on December 25, the spot exchange rate of the RMB against the US dollar strengthened and rose above the “7” mark. This is the first time since October 2024 that it has risen above this integer mark. Also, according to China Civil Aviation News, the three-day holiday on New Year's Day in 2026 has stimulated the huge potential of the cultural tourism consumer market, and demand for civil aviation travel is growing significantly. Guoxin Securities believes that China's airline ticket prices are expected to rise steadily in 2026. Furthermore, the decline in oil prices and the appreciation of the RMB will help airlines release performance, so the bank believes that there is plenty of room for flexibility in aviation performance after the domestic economy recovers in the future.

3. The purple gold series rebounded against the market. At the close, Zijin Gold International (02259) rose 1.39% to HK$146; Zijin Mining (02899) rose 0.85% to HK$35.66.

The purple and gold series had a blast last night. Zijin Gold International expects to achieve net profit attributable to shareholders of the parent company of about US$15-1.6 billion in 2025, an increase of about 212%-233% over the previous year; Zijin Mining expects to achieve net profit of about 510-52 billion yuan for the whole year, an increase of about 59%-62% over the previous year, reaching another record high. Zijin Mining indicated that according to this announcement, its production will continue to grow rapidly in 2026:105 tons of mineral gold, 1.2 million tons of copper, 120,000 tons of equivalent lithium carbonate, and 520 tons of mineral silver. If this target is completed on schedule, mineral gold production will break the 100 ton mark two years ahead of schedule.

4. The trend of auto stocks is divided. At the close, Great Wall Motor (02333) rose 3.24% to HK$15.3; GAC Group (02238) rose 0.74% to HK$4.09; and Ideal Automobile-W (02015) fell 1.44% to HK$64.85.

On December 30, the National Development and Reform Commission and the Ministry of Finance issued the “Notice on Implementing Large-scale Equipment Renewal and Consumer Goods Trade-In Policies in 2026". The automobile section has been adjusted compared to the 2025 subsidy policy: in terms of vehicle purchase conditions, replacement subsidies have increased restrictions on emissions and model catalogues. Fuel vehicles require a displacement of 2.0L or less, and new energy vehicles are included in the vehicle purchase tax exemption catalogue. In terms of the form of subsidies, replacement and renewal subsidies were changed from differentiated policies in various regions to uniform subsidy standards throughout the country, and from fixed subsidies to subsidies proportional to vehicle prices. Huatai Securities believes that the rapid introduction and implementation of the new policy will help stabilize consumers' car purchase expectations, but it is still necessary to pay attention to the stimulating effect of subsidies on terminal car purchases; demand for middle and high-end cars will be less affected.

Popular exotic stocks

1. Insili Smart (03696) continued to rise and ended at the close, up 23.88% to HK$37.14.

Insilicon Intelligence is a leading enterprise in the field of AI-driven drug discovery and development in China. As of December 10, 2025, the company has generated more than 20 clinical or IND reporting assets through Pharma.ai, a self-developed generative artificial intelligence platform. Three of these assets have been authorized to international pharmaceutical companies, with a total contract value of up to US$2.1 billion, and a Phase II asset in the self-development stage, which is at a leading stage in the industry.

2. Delin Holdings (01709) strengthened its volume and closed up 9.68% to HK$2.04.

Delin Holdings announced yesterday that its subsidiary Delin Securities has been conditionally approved by the Hong Kong Securities and Futures Commission to provide virtual asset trading services under a comprehensive account arrangement. Delin Securities has accepted the relevant conditions imposed by the Securities Regulatory Commission on the upgrade of its No. 1 virtual asset trading service license on December 29, 2025, and will launch virtual asset trading services after receiving official approval from the Securities Regulatory Commission.

3. Jiangxi Copper Co., Ltd. (00358) broke the peak again and closed, rising 5.36% to HK$42.88.

On Tuesday, the price of LME copper rose 2.7% to $12,550 per ton. On the previous trading day, copper prices hit a record high of 12,960 US dollars. Despite a short-term technical correction, the overall rise during the year was still strong. Analysts believe that against the backdrop of a continued tightening of the supply and demand pattern and the acceleration of data center construction, the upward momentum of copper prices is expected to continue until next year.

4. Connett Optics (02276) performed well, rising 4.25% to HK$54 at the close.

On December 30, the National Development and Reform Commission and the Ministry of Finance issued the “Notice on Implementing Large-scale Equipment Renewal and Consumer Goods Trade-In Policies in 2026”, which implements the decisions and arrangements for optimizing the implementation of the “Two New” policies and clarifying the scope of support, subsidy standards and work requirements for the 2026 “Two New” policies. It is worth noting that in terms of purchasing new digital and smart products, the category will expand in 2026, and smart glasses will be added, and the subsidy amount and ratio will not change.