China's Indexes Registered Solid Gains In 2025 Defying U.S. Tariff Headwinds

Li Chen
31 Dec, 2025
Hong Kong

On the final trading day of 2025, stocks in China and Hong Kong closed down in a year dominated by geopolitical tensions. 

The Hang Seng Index decreased 0.9%, and the mainland-focused CSI 300 index eased 0.5% as investors held out for additional policy support in the upcoming year.

The Hang Seng Index soared 28%, and the 89-member benchmark delivered its best performance since 2017, when the index advanced 36%. 

The mainland-focused CSI 300 index advanced 18% amid recovering sentiment after China's economic growth held up despite elevated trade tensions with the U.S. 

The CSI index registered its best annual gain since 2020.

Financial markets in China are closed on Thursday and Friday, and the Hong Kong Exchange remained closed in the afternoon session on Wednesday and all day Thursday. 

Benchmark indexes faced strong headwinds starting March 19 and dropped to their lowest levels on April 7, after the U.S. launched its global tariff war.

However, market indexes recovered over the next three months after the Trump administration rolled back its aggressive tariffs on China and other leading trade partners following a sharp sell-off in the U.S. Treasuries. 

Despite the elevated U.S. tariffs, China's global exports continued to advance in the first eleven months of 2025, and shipments to the European Union and the ASEAN region rose at the sharpest pace. 

In the year ahead, investors are hoping for more policy support for the housing market and investments in advanced technology and renewable energy-focused projects. 

China's official economic growth in the first three quarters was 5.2%, supporting the government to achieve its 2025 annual economic growth target rate of 5%. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 0.9% to 25,630.54, and the mainland-focused CSI 300 index fell 0.5% to 4,629.18. 

The solid gains in commodities supported the surge in stocks of mining companies in 2025 in mainland China and Hong Kong. 

China Hongqiao Group and Zijin Mining Group soared 177% and 152%, respectively, the two best-performing stocks in the Hang Seng Index in 2025. 

On the downside, Meituan and Li Auto plunged 32% and 31%, respectively, after the intense price war eroded profit margins.

In Asia, the Kospi Index in Seoul catapulted 76% after the election of the new president removed political uncertainty, and the Nikkei 225 Stock Average gained 28% after the election of the new prime minister raised hopes for additional stimulus. 

The S&P 500 index jumped 17%, the tech-focused Nasdaq Composite surged 21%, and they rebounded from sharp losses induced by the Trump administration's sky-high tariffs.