Chinese Stocks Post First Annual Gain Since 2020

Chinese stocks dipped on Tuesday, the final trading day of 2024, but were on track for their first annual gain following an unprecedented three-year decline, while Hong Kong shares also ended the year higher.

The blue-chip CSI 300 Index, tracking the biggest companies listed in the cities of Shanghai and Shenzhen, rose 15.9 in 2024, snapping a losing streak since 2021 set off by the COVID-19 pandemic, property sector woes, and weak consumer confidence.

The Shanghai Composite Index gained 13.9 in 2024, ending a two-year decline, while Hong Kongs benchmark Hang Seng Index closed the years final session up 0.1, for an annual gain of 17.9 that ended four consecutive years of losses.

Within the equities markets, Chinas performance came as a positive surprise to many investors, analysts at Value Partners said in a note this week.

Various supportive measures announced during the second half of the year, which targeted monetary policy, the property market, and capital markets, largely surpassed expectations and overshadowed ongoing economic concerns.