Mainland China Asset Rotation to Stocks Extended Weekly Gains to 3%

Li Chen
22 Aug, 2025
Hong Kong

Benchmark indexes in China and Hong Kong resumed their upward march, as investors sought bargains and chased returns. 

The Hang Seng Index edged up 0.3%, the mainland-focused CSI 300 index gained 1.1%, and investors rotated into stock from fixed-income securities. 

The low interest rates, persistent malaise in the property market, and record-high prices in gold have driven investors to riskier assets. 

Investors are rotating out of fixed-income securities and products and increasing exposure to stocks. 

Foreign investors have been increasing exposure to China stocks trading in Hong Kong amid low valuation and a stable earnings growth outlook. 

Economists are estimating that China's economy will deliver the growth rate of 5% set by the government, despite the ongoing trade tensions with the U.S. 

State-controlled financial companies are increasing their exposure to mainland-China-based stocks as well. 

 

China Indexes and Stocks 

The Hang Seng Index increased 0.3% to 25,184.66, and the CSI 300 Index rose 1.1% to 4,338.65. 

For the week, the CSI 300 index gained 2.9% and the Hang Seng trimmed losses to 0.5%. 

Kuaishou Technology gained 3.5% to HK $74.60, and the short-video sharing platform operator reported better-than-expected profit in the latest quarter and declared a special dividend. 

Semiconductor Manufacturing International gained 6.5% to HK $54.95 after a report suggested that Nvidia is looking to halt production of the China-focused H20 chip for artificial intelligence applications. 

Stock brokerage firms advanced as investors rotated their investments from fixed-income securities into stocks. 

CSC Financial added 3.9% to HK $14.75, Everbright Securities gained 2.8% to HK $11.59, and China Galaxy Securities added 0.2% to HK $12.30.