Hong Kong shares have found support for a push to a new yearly high.
HK 50 – Daily Chart
The HK50 has shaken off a recent consolidation to jump back toward the October high of 27,402. Supportive global sentiment can see an imminent test in the week ahead.
Hong Kong shares were boosted by strong industrial data from China, with profit at industrial firms rising 5.3% year-on-year in December, after a more than 13% drop in November.
Data from the National Bureau of Statistics on Tuesday said profits at major industrial firms rose last year by 5.3 per cent year-on-year last month. That was a relief from a drop of more than 13% in November. The increase was led by strong activity at metals processing firms, where profits nearly tripled, while profits at non-ferrous metal firms climbed by more than 22%.
“We remain overall positive on Chinese equities but with a recognition that performance is going to become increasingly sector or stock specific,” said William Bratton, head of equity research for BNP Paribas Asia.
Industrials, materials and technology were likely to lead to further outperformance in the first half of 2026, analysts said. Traders are also convinced that the Chinese government will fuel markets with stimulus, despite recent efforts to slow speculative demand.
US stocks have also been supported, with the S&P 500 trading within a few points of the all-time highs. A cooling of global risk sentiment has boosted share prices, but gold and silver have continued to rise.
