HONG KONG (Reuters) – China’s major stock indices recorded their first annual gain since 2020 in 2024 after an unprecedented three-year decline, linked in particular to the COVID-19 pandemic.
The CSI 300 index, which brings together the largest companies listed in the cities of Shanghai and Shenzhen, increased by 14.68% in 2024, ending a series of losses since 2021, linked to the pandemic, the difficulties of real estate sector and weak consumer morale.
The Shanghai Composite Index, for its part, gained 12.66% in 2024, ending a two-year decline, while Hong Kong’s benchmark Hang Seng Index, with an annual gain of 17.67 %, interrupted a cycle of four consecutive years of losses.
“On the equity markets, China’s performance has positively surprised many investors,” Value Partners analysts underlined in a note published this week.
“The various support measures announced during the second half of the year, which targeted monetary policy, the real estate market and capital markets, far exceeded expectations and overshadowed ongoing economic concerns,” they added.
With an annual increase of 34.70%, banking stocks led the onshore market in 2024, with the four largest public banks reaching multi-year highs.
The electronic chip sector jumped 52.47%, as Chinese investors strengthened their positions in local semiconductor manufacturers in a context of tightening restrictions imposed by the United States in this area.
The last session of the year was, however, marked by a decline in stocks in mainland China, with the Shanghai SSE Composite index falling by 1.63% and the CSI 300 by 1.60% after mixed PMI statistics. in China which notably shows a slowdown in manufacturing activity in December.
The market is in the final phase of trading “driven by political expectations” following key meetings of Chinese leaders this month, Dai Qing, strategist at Changjiang Securities, said in a note.
Looking ahead to 2025, dividend-paying stocks could still outperform the broader market in the near term, particularly when the inauguration of U.S. President-elect Donald Trump in January is expected to cause market disruption, he said. -he added.
(Hong Kong office reporting; Claude Chendjou, editing by Kate Entringer)
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