China and Hong Kong Indexes Diverged Amid Uneven Recovery

Li Chen
02 Dec, 2025
Hong Kong

Optimism ruled markets in China and Hong Kong amid expectations of additional stimulus measures to stabilize economic growth. 

The Hang Seng Index edged up 0.1%, and the mainland-focused CSI 300 index decreased 0.6% as investors reviewed the latest official survey on business activities. 

China's manufacturing and non-manufacturing activities confirmed the ongoing slowdown, according to the latest data released by the National Bureau of Statistics on Sunday. 

The Manufacturing Purchasing Managers' Index for November edged up to 49.2 from 49.0 in October, after both production and demand showed a slight improvement.

A level above 50 indicates expansion, while a level below 50 shows contraction.  

The persistent weakness in domestic demand, intense price competition, and cautious export outlook kept manufacturing activity in check. 

The PMI for non-manufacturing, which includes construction, eased to 49.5 in November, weaker by 0.6 percentage points than in the previous month.

The weak property sector and lackluster consumer demand dragged down the growth into negative territory for the first time in three years and to the lowest level since December 2022. 

New orders, export demand, and employment remained in contraction as businesses struggled with thin margins. 

China's Composite PMI Output Index eased to 49.7 in November from 50.0 in the previous month, marking the lowest reading in 35 months. 

 

China Indexes and Stocks 

The weaker-than-expected business activities surveys raised expectations for additional policy support measures at the end of the annual economic work conference later this month.  

The Hang Seng Index increased 0.1% to 26,061.75, and the mainland-focused CSI 300 index edged down 0.6% to 4,548.78. 

Electric vehicle makers turned lower after November's sales gains fell short of market expectations. The government subsidies and lower tax rates, set to expire at the end of 2025, drew a rush of buyers. 

Li Auto decreased 1.5% to HK $69.20, Xiaomi Corp. edged up 0.5% to HK $40.52, and Xpeng fell 5.4% to HK $78.85. 

Xpeng said vehicle sales soared 18.9% to 36,728, and Nio's soared 76.3% to 36,275 in November.