China Stocks Extend Multi-Year Highs as Investors Chase Returns

Li Chen
18 Aug, 2025
Hong Kong

Stocks in China and Hong Kong advanced to multi-year highs amid rising risk appetite and the sustained buying by the state-owned entities. 

The Hang Seng index gained 0.6%, and the CSI 300 index advanced 1.5% as large state-controlled institutions increased exposure to tech stocks. 

Moreover, the yield on 10-year Chinese government bonds increased to 2.7%. 

Despite the weakness in the macroeconomic outlook, the Hang Seng index and the CSI 300 index continue to advance and extend this year's gains to 29% and 11%, respectively. 

Last week, the National Bureau of Statistics reported a weaker-than-expected rise in retail sales, industrial output, and fixed-asset investment. 

Moreover, jobless rates continue to remain elevated, and home prices across 70 of the largest cities extended their decline. 

Investors reviewed announcements from the U.S. and Russia summit, and the leaders of the two nations failed to provide details of the discussion and a possible timetable to end the invasion of Ukraine. 

Earnings continue to dominate investor sentiment in Monday's trading, and Baidu, Xiaomi, Hong Kong Exchanges and Clearing, China Vanke, and Longfor Group Holdings are set to announce their corporate results later in the week. 

 

China Indexes and Stocks 

The Hang Seng index increased 0.6% to 25,426.53, and the CSI 300 index advanced 1.5% to 4,265.40. 

Property developers were in focus ahead of the release of quarterly results this week. 

China Vanke Co. Ltd. decreased 0.8% to HK $5.22, and Longfor Group Holdings declined 2.8% to HK $10.56. 

Baidu Inc. increased 2.1% to HK $88.80, Hong Kong Exchanges and Clearing Ltd. gained 0.3% to HK $440.20, and Xiaomi Corp. added 1.2% to HK $53.50.