China Indexes Rebounded 2% After CSRC Vowed to Stabilize Markets

Li Chen
14 Jan, 2025
Hong Kong

Stock market indexes in China and Hong Kong rebounded from multi-month lows after China's securities regulator talked up the market amid promises of steps to stabilize markets. 

The Hang Seng index increased 1.4%, and the CSI 300 index advanced 2% following a statement released by the China Securities Regulatory Commission after a conference. 

Chinese officials are playing an age-old game of taking up markets while struggling to devise structural reform as top political leaders struggle to adjust to slower economic growth in the years ahead. 

Chinese politicians have shown little interest in tackling deep-rooted structural economic reforms, local government corruption amid falling foreign direct investments, and persistent weakness in property markets. 

Investors have generally looked beyond record exports and trade surpluses in December and 2024, because the rise in sales has not translated to a corresponding increase in earnings.

Investors are bracing for weak earnings growth in the December quarter and dialing down 2025 earnings growth expectations amid decelerating economic growth and ongoing property market malaise. 

 

China Stock Movers 

The Hang Seng index increased 1.4% to 19,145.88, and the mainland-focused CSI 300 index jumped 2% to 3,796.97. 

Wuxi AppTec Co. Ltd. increased 3.4% to ¥54.99 after the biotech company sold 86 million shares in a Cayman Islands-registered unit for HK $2.4 billion or $312 million. 

WuXi Biologics jumped 5.4% to HK $17.78 after the release of stake sale news. 

BYD increased 3.9% to HK $259.0, Li Auto advanced 2.9% to HK $87.75, and Xpeng Inc. increased 6.4% to HK $49.60. 

Alibaba Group Holding increased 1.8% to HK $79.50, Tencent Holdings advanced 3.4% to HK $378.60, and Baidu Inc. gained 2.7% to HK $77.55.