China Markets In Holding Pattern Ahead of 2026 Economic Growth Targets

Li Chen
05 Dec, 2025
Hong Kong

Stocks in China and Hong Kong lacked direction and momentum ahead of rate decisions from major central banks and domestic policy updates.

The Hang Seng index decreased 0.3%, and the mainland-focused CSI 300 index inched up 0.1% as investors await fresh signals after the annual policy meeting in Beijing later this month. 

Investors debated rate outcomes after a meeting of policymakers in Washington, D.C., amid a weakening macroeconomic environment and rapidly cooling labor market. 

Traders held out for a 25 basis-point rate cut at the end of a two-day Fed policy meeting on December 10, as the weakness in international crude oil prices overshadowed tariff-driven inflation.  

The Bank of Japan is more likely to raise rates at the end of its policy meeting later in the month, as policymakers struggle to shore up the faltering yen and tackle resurgent inflation. 

Closer to home, investors are worried that policymakers at the end of the annual economic conference may decide to wait a few more months before announcing a package of economic stimulus measures. 

China's committee of top leaders is expected to lower the annual economic growth target of around 4.5% in 2026 from 5% in 2025 because of headwinds from the weakening domestic demand, persistent malaise in the property market, and uncertain outlook for international trade. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 0.3% to 25,872.37, and the mainland-focused CSI 300 index inched up 0.1% to 4,551.81. 

Moore Threads Technology soared more than fourfold to 590.81 yuan after the artificial-intelligence chip maker listed its stock on the Shanghai Stock Exchange.  

Moore priced its initial public offering at 114.28 yuan per share and raised gross proceeds of 8 billion yuan, or $1.13 billion. 

Guangdong Tianyu Semiconductor dropped 24% to HK $44.32, and the company priced its initial public offering at HK $58 per share. 

The largest producer of silicon carbide epitaxial wafers sold 30.1 million shares and raised gross proceeds of HK $1.74 billion. 

Guangzhou Xiao Noodles Catering Management plunged 27% to HK $5.08 after the company listed its stock on the Hong Kong Stock Exchange. 

The operator of the noodle restaurant chain Yujian Xiaomian priced its 97.36 million-share initial public offering at HK$7.04 per share and raised gross proceeds of HK$685.4 million.