The Hong Kong Special Administrative Region's stock market wrapped up 2024 with a significant gain of nearly 18 percent after a four-year losing streak, boosted by a strong rebound from late September on hopes of policy support and the Chinese mainland’s recovering economy.
The benchmark Hang Seng Index on Tuesday edged up around 0.1 percent to 20,059.95 points in its final trading session of the year, bringing the full-year advance to more than 3,000 points.
The Hang Seng Tech Index recorded a 19 percent increase this year, the first growth since 2021.
Hong Kong stocks kicked off 2024 with a lackluster start from 17,000 points and hit its 14,794-point low of the year on Jan 22 as concerns over a sluggish recovery and ongoing global monetary tightening kept investors wary.
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The most notable rally this year ran from late September through early October, when mainland authorities announced sweeping stimulus measures to revive the economy.
Policy tailwinds sent the benchmark index to a 32-month peak at 23,241 points on Oct 7, before a 10 percent single-day plunge on investors' profit-taking that activated a correction to the current level at around 20,000 points.
Smartphone maker Xiaomi stood as the top gainer with a whopping 121-percent rise for the year, followed by tourism booking platform Trip.com Group and food delivery giant Meituan.
Electric vehicle manufacturer Nio and beer maker Budweiser Brewing Company APAC were among those to take the largest hit, with a share price drop of 52 percent and 49 percent this year, respectively.
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Heading into 2025, Kenny Wen, head of investment strategy at KGI Asia, said he holds a cautiously optimistic outlook on the Hong Kong market.
He set a target of 23,200 points for the Hang Seng Index next year, implying a potential upside of over 15 percent from 2024 driven by sustained corporate earnings growth.
Investors will continue to monitor the mainland’s policy direction, following recent pledges for “moderately loose” monetary policy and “more proactive” use of fiscal tools to bolster the economy.
Zhao Wenli, chief strategist of China Construction Bank International, said the annual gathering of the nation’s top lawmakers in March would serve as a critical window for policy adjustments, which could provide a significant boost to market sentiment.
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He highlighted several possible stimulus policies, including raising next year’s budget deficit limit and establishing a dedicated fund to stabilize the struggling real estate sector.
Zhao predicted that the Hang Seng Index would fluctuate between 18,000 and 23,000 points in 2025.
