Chinese Markets Surge on Positive Economic Data and Tech Gains

Chinese and Hong Kong stock markets closed the week with gains due to uplifting economic data. The CSI300 and Hang Seng indexes saw notable rises, driven by strong tech and semiconductor stocks. China ended 2024 with robust economic growth, aided by government stimulus and outperforming previous predictions.

China and Hong Kong stock markets saw an upward trend on Friday, closing the week positively, driven by encouraging Chinese economic data. The CSI300 Index in China rose by 0.3%, while the Shanghai Composite gained 0.2%. Hong Kong's Hang Seng index followed suit, closing with a 0.3% increase.

Throughout the week, the CSI300 climbed 2.1%, and the Hang Seng gained 2.7%, as China's economy outperformed expectations at the end of 2024. A series of stimulus measures buoyed the economy, yielding a 5.4% growth in the fourth quarter compared to the previous year, the fastest pace since mid-2023.

Technology and semiconductor stocks led the charge in market growth, addressing themes of independent innovation amidst potential trade tensions with the U.S. Key tech indexes in China climbed 1.4% and 2.4%, respectively, with Semiconductor Manufacturing International Corp (SMIC) experiencing a nearly 10% surge. Meanwhile, real estate stocks remained steady, and China Vanke saw a dip due to executive-related developments.

(With inputs from agencies.)