Chinese Stocks End Years of Decline with 2024 Annual Gains

Asian Stocks Retreat Amid Tech Sector Caution, Chinese Stocks Saw Gains

Key Points

  • CSI 300 and Shanghai Composite ended multi-year losing streaks with 14.7% and 12.8% gains, respectively.
  • Hong Kong’s Hang Seng Index gained 17.7%, breaking a four-year decline.
  • Policy measures like rate cuts and home purchase incentives drove recovery.
  • Banking stocks surged 34.7%, leading market gains. The chip sector rose 53.9%, bolstered by domestic demand amid U.S. restrictions.

Chinese stocks closed 2024 with notable annual gains, marking a turnaround after years of losses. Despite a dip on the final trading day, optimism surrounding policy support fueled a year of recovery. The blue-chip CSI 300 Index, which tracks the largest companies listed in Shanghai and Shenzhen, climbed 14.7% this year, breaking a three-year losing streak caused by the COVID-19 pandemic, property market issues, and low consumer confidence. Similarly, the Shanghai Composite Index rose 12.8%, ending two years of declines.

Hong Kong’s Hang Seng Index rose modestly by 0.1% in its final session, capped by a 17.7% gain that ended four consecutive years of losses. Analysts at Value Partners noted that the performance of Chinese equities surprised many investors, attributing the turnaround to robust policy support during the latter half of the year. Measures such as interest rate cuts, home purchase incentives, and funding schemes for stock buying exceeded expectations and helped counterbalance ongoing economic concerns.

Since September, key actions by Chinese authorities have been instrumental in stabilizing the capital markets. These measures included bold steps to revive the economy and restore domestic confidence, with policies focusing on monetary easing and support for the property sector. China Asset Management emphasized that stabilizing the market had become a policy imperative.

Banking stocks led the recovery, with an impressive 34.7% annual rise, driven by strong performances from China’s four largest state banks. The chip sector also surged 53.9%, buoyed by domestic investors’ interest in local semiconductor companies amid U.S. chip restrictions.

However, mainland stocks faltered on the final trading day, with the CSI 300 Index falling 1.6%. Strategist Dai Qing from Changjiang Securities suggested that “policy expectation-driven” trading is entering its final phase. Looking ahead to 2025, the dividend-paying stocks may outperform, particularly as potential market disruptions loom with U.S. President-elect Donald Trump’s inauguration in January.

EDITORIAL TEAM
EDITORIAL TEAM
TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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