Bargain Hunters Lift China and Hong Kong Stocks, AIA Reports Record Earnings In 2024

Li Chen
14 Mar, 2025
Hong Kong

Stock market indexes rebounded in China and Hong Kong as investors searched for bargains and overlooked another round of fresh tariffs announced by the U.S. 

The Hang Seng index soared nearly 3%, and the mainland-focused CSI 300 index advanced nearly 2.5%, and benchmark indexes halted a five-day decline.

Stock market volatility reached a new high this week amid escalating trade tensions between the U.S. and Europe, and the U.S. announced its plans to expand its tariffs to shipments from Japan. 

Moreover, Russia rejected a peace plan proposed by the U.S. for a 30-day ceasefire with Ukraine, as the war continues into the fourth year with no end in sight. 

After today's rally, the Hang Seng index erased weekly losses of more than 3%, and the CSI 300 index gained 1.7% in the period.

The Friday's market surge was partly driven by the expectations of a policy shift announcement scheduled on Monday, and investors are hoping that policymakers will provide detailed implementation plans for the previously announced stimulus measures.

In overnight trading in New York, the S&P 500 index closed down 1.4% and the Nasdaq Composite plunged 2%, and benchmark indexes extended losses to more than 10% from the peak in mid-February.

 

China Indexes and Stocks 

The Hang Seng index soared 2.5% to 24,047.46, and the mainland-focused CSI 300 index advanced 2.4% to 4,004.21. 

Alibaba Group Holding jumped 3.3% to HK $135.80, Tencent Holdings advanced 3.7% to HK $526.0, Baidu Inc. increased 2.2% to HK $91.45, and JD.com Inc. added 4.5% to HK $164.40.

Electric vehicle makers advanced in Friday's trading, as investors anticipated additional support by the government to lift domestic sales. 

Li Auto advanced 1% to HK $111.60, BYD jumped 4.9% to HK $378.60, and Xpeng Inc. decreased 4.3% to HK $91.35.

AIA Group Ltd. decreased 2.8% to HK $61.05 despite the insurance company reporting a surge in 2024 profit. 

The insurance company said net income in 2024 advanced 82% to $6.4 billion, driven by an 18% increase in new business value to $4.71 billion.

Mainland customers continued to buy Hong Kong dollar-denominated health and life insurance policies to hedge against the potential future decline in the yuan. 

New business revenue in Hong Kong advanced 23% to $1.8 billion, in mainland China soared 20% to $1.2 billion, and in Thailand and Singapore advanced 15%, followed by 10% gains in Malaysia. 

The insurance company announced a final dividend of HK $1.3098, increasing the total dividend by 9% from a year ago to HK $1.7548.

As a part of the company's goal to return capital to shareholders, the insurance company announced a $1.6 billion stock repurchase plan.