Investor Optimism Supports China Indexes Near Multi-Year Highs

Li Chen
11 Sep, 2025
Hong Kong

Stock market indexes in Hong Kong came under pressure but in mainland China advanced. 

The Hang Seng index decreased 0.4%, and the mainland-focused CSI 300 soared more than 1.5% amid worries about constantly changing U.S. trade policy. 

Mainland investors held out for additional monetary and fiscal stimulus amid recent mixed economic data on inflation, fixed-asset investments, residential housing, and labor markets.

The liquidity-driven rally over the last four months hit the wall last week as investors reassessed the earnings growth outlook following a string of weaker-than-expected corporate results.

Despite the elevated trade tensions between the U.S. and China, foreign investors have been pouring money into Chinese stocks trading on the Hong Kong Stock Exchange. 

The steady flow of foreign funds supported by the sustained investment from state-controlled banks and retail investors has lifted China's benchmark indexes to multi-year highs. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 0.4% to 26,098.09, and the mainland-focused CSI 300 index soared 1.8% to 4,524.16. 

Pharmaceutical makers came under pressure amid speculation that the U.S. president is likely to impose additional tariffs and barriers for drugs made in China. 

Sino Biopharmaceutical Ltd. decreased 5.4% to HK$8.30, WuXi Biologics declined 4.3% to HK$35.98, and CSPC Pharmaceutical Group dropped 8% to HK$10.07. 

Alibaba Group Holding Ltd. edged up 0.6% to HK$143.60, and the company announced a planned offering of $3.2 billion later this year. 

Nongfu Spring Co. Ltd. decreased 1.3% to HK$52.0, Chow Tai Fook Jewellery Group Ltd. gained 1.3% to HK$16.54, and Kweichow Moutai Co. Ltd fell 1.3% to ¥1,518.01.