Chinese shares fell on Tuesday, the last trading day of 2024, but were on track for their first annual gain after an unprecedented three-year decline, while Hong Kong shares also ended the year on a high.
The blue-chip CSI 300 index, which tracks the biggest companies listed in the cities of Shanghai and Shenzhen, rose 15.9% in 2024, halting a run of losses since 2021 triggered by the Covid-19 pandemic, problems in the real estate sector and weak consumer confidence.
The Shanghai Composite Index gained 13.9% in 2024, ending a two-year decline, while Hong Kong’s benchmark Hang Seng Index closed the final session of the year up 0.1% for a 17-year annual gain. .9% which ended four consecutive years of losses.
“In equity markets, China’s performance was a positive surprise for many investors,” Value Partners analysts said in a note this week.
“Several support measures announced during the second half of the year, targeting monetary policy, the housing market and capital markets, largely exceeded expectations and overshadowed current economic concerns.”
With a 36% gain, banking stocks have led local market gains this year as the four biggest state banks hit multi-year highs.
The chip sector rose 54% as domestic investors increased their holdings in local semiconductor makers amid tighter U.S. restrictions on chips.
