NewTimeSpace丨Hang Seng Index Closes Out 2025: Six Stocks Double, China Hongqiao (01378.HK) Leads Gains

In 2025, Hong Kong's stock market saw hotspot sectors blooming across the board, with non-ferrous metals and semiconductors particularly Standing out. Full-year southbound capital net purchases exceeded HK$1.4 trillion, with cumulative net purchases surpassing HK$5 trillion.

The Hang Seng Index climbed from approximately 19,600 points at the start of 2025 to 25,630 points, posting a full-year gain of 27.77%—its best annual performance in five years. The Hang Seng Tech Index rose in tandem with a gain of nearly 23.45%, while the Hang Seng China Enterprises Index increased 22.27% for the year.

In terms of global index performance, this result ranked among the top of major global stock indices, outperforming the Nasdaq and S&P 500.

Public information shows that the Hang Seng Index, compiled by Hang Seng Indexes Company Limited (a wholly-owned subsidiary of Hang Seng Bank) and officially launched on November 24, 1969 (base date: July 31, 1964; base value: 100 points), is Hong Kong’s longest-standing and most authoritative benchmark for overall market performance, calculated using free-float market capitalization weighting methodology.

Currently, the Hang Seng Index comprises 89 constituent stocks covering sectors including metals, pharmaceuticals, banking, consumer goods, semiconductors, insurance, and real estate.

According to New Spacetime Research statistics, 71 Hang Seng constituent stocks posted gains in 2025, with an average increase of 44.47% and six stocks doubling in value. Meanwhile, 18 stocks declined, with an average drop of 11.26% and two stocks falling over 30%.

The top performers included China Hongqiao, Zijin Mining, SMIC, Hansoh Pharma, and Pop Mart, representing sectors such as metals, semiconductors, chemical pharmaceuticals, and entertainment products. The average gain for the top 20 performers reached 95.02%.

Among these leading gainers, China Hongqiao, Zijin Mining, and SMIC topped the Hang Seng constituents.

New Spacetime Research learned that China Hongqiao, as the world's largest primary aluminum producer, has built a deep cost moat through its "aluminum-power-grid integration" model, covering the complete industrial chain from alumina and primary aluminum to processed products.

In 2025, China Hongqiao’s strong stock price rally was underpinned by impressive financial performance. Data shows that in the first half of 2025, the company reported revenue of RMB 81.039 billion, up 10.12% year-on-year, and net profit attributable to parent company of RMB 12.361 billion, up 35.02% year-on-year.

On October 31, China Hongqiao disclosed that its core subsidiary, Shandong Hongqiao, achieved revenue of RMB 116.926 billion in the first three quarters of 2025, up 6.23% year-on-year, and net profit of RMB 19.371 billion, up 23.15% year-on-year.

CMB International noted that China Hongqiao benefits from multiple tailwinds that should drive further valuation expansion. The substantial performance growth was mainly driven by "volume and price increases" in aluminum products and cost reductions from significantly lower electricity prices. HSBC expects China Hongqiao to deliver further profit growth in Q4 2025.

As the "dual champion of gold and copper" in the metals sector, Zijin Mining saw its performance and stock price surge in 2025, propelled by rising precious metal prices.

In the first three quarters of 2025, Zijin Mining posted total operating revenue of RMB 254.2 billion, up 10.33% year-on-year, and net profit attributable to parent company of RMB 37.864 billion, up 55.45% year-on-year. Driven by surging gold and silver prices, its gross margin reached a record high of 24.93% in the first three quarters, with net profit margin hitting an impressive 17.98%.

On December 30, 2025, Zijin Mining released its profit forecast for 2025, expecting full-year net profit of approximately RMB 51–52 billion, up about 59–62% year-on-year, hitting another record high.

From 2017 to 2024, Zijin Mining’s operating revenue grew from RMB 94.549 billion to RMB 303.64 billion, with revenue and net profit increasing for eight consecutive years. Based on 2025 guidance, the streak has extended to nine consecutive years.

Among the top three Hang Seng leaders, SMIC, as a leading integrated circuit wafer foundry and a mainland China semiconductor manufacturing leader, offers leading-edge process capabilities, capacity advantages, and comprehensive services, providing 8-inch and 12-inch wafer foundry and technical services globally.

In 2025, the domestic semiconductor industry recovery was evident. Guotai Junan noted that as the global semiconductor cycle bottoms out and rebounds, supported by domestic policies and capital, manufacturing leaders like SMIC are entering a dual recovery window for both earnings and valuation.

SMIC’s latest financials show that in the first three quarters of 2025, it achieved cumulative revenue of RMB 49.51 billion, up 18.20% year-on-year, and net profit attributable to parent company of RMB 3.818 billion, up 41.1% year-on-year.

Notably, after market close on January 2, 2026, the Hong Kong Stock Exchange disclosed that the National Integrated Circuit Industry Investment Fund Co., Ltd. increased its stake in SMIC H-shares from 4.79% to 9.25% on December 29, 2025.

Despite the Hang Seng Index's strength in 2025, 18 constituent companies still declined, with 10 stocks falling more than 10%.

Among the decliners, Meituan-W, Li Auto-W, and BYD Electronic led the Hang Seng constituents lower. These three underperformers were affected by different events that caused their stock prices to lose momentum.

For Meituan, 2025 was a challenging year, largely due to the food delivery war that began in early 2025, casting a shadow over its performance and future prospects.

New Spacetime Research learned that Meituan is a lifestyle service e-commerce platform that connects consumers and merchants via internet technology, primarily serving food needs and extending into lifestyle and travel services.

According to Meituan’s Q2 2025 earnings, revenue was RMB 91.84 billion, up 11.7% year-on-year, but adjusted net profit plunged 89% year-on-year to just RMB 1.49 billion, far below the market consensus of RMB 9.85 billion.

Operating profit collapsed from RMB 11.3 billion to RMB 230 million year-on-year, with operating margin dropping from 13.7% to 0.2%. This means Meituan’s daily profit fell from about RMB 124 million to merely RMB 2.55 million, a sharp deterioration in profitability.

Meituan attributed this performance setback to "irrational competition"—essentially the massive impact of the food delivery war. To combat competitive pressure, Meituan had to significantly increase subsidies, with sales and marketing expenses surging 51.8% year-on-year to RMB 22.5 billion, mainly spent on promotions, advertising, and user incentives.

Among the top decliners, Li Auto, as one of China’s leading NEV makers, focuses on premium smart electric vehicles.

Since late September 2025, Li Auto faced intense scrutiny over false advertising claims and vehicle fire incidents, causing its stock price to tumble.

Li Auto’s latest results show that in Q3 2025, revenue was RMB 27.4 billion, down 36.2% year-on-year and 9.5% quarter-on-quarter. Gross profit was RMB 4.5 billion, down 51.6% year-on-year and 26.3% quarter-on-quarter. Net loss was RMB 624 million, compared with a profit of RMB 2.8 billion in the same period last year, swinging to a loss. Li Auto’s Q3 revenue decline came despite industry prosperity, abruptly ending 11 consecutive quarters of profitability.

New Spacetime Research estimates that Li Auto’s stock price fell 34.41% from September 26 to December 31, 2025.

BYD Electronic, a BYD subsidiary listed in Hong Kong in 2007, has grown into a global leading high-tech innovative product provider.

Its business spans smartphones, tablets, new energy vehicles, residential energy storage, smart home, AI servers, robotics, and other diversified sectors.

Data shows BYD Electronic’s revenue in the first three quarters of 2025 was RMB 123.285 billion, up 0.95% year-on-year; net profit was RMB 3.137 billion, up 2.4% year-on-year. In Q3, revenue was RMB 42.7 billion, down 2% both year-on-year and quarter-on-quarter. Gross margin was 6.9%, down 1.6 percentage points year-on-year and 0.5 percentage points quarter-on-quarter.

New Spacetime Research learned that BYD Electronic’s Q2 2025 net profit was RMB 1.41 billion, down 9% year-on-year, missing expectations. Its Q3 2025 gross margin fell 1.6 percentage points year-on-year to 6.9%, dragged down by higher assembly mix and lower automotive business gross margin.

Looking ahead to 2026, Galaxy Securities stated that against a backdrop of global monetary policy easing, both foreign capital and southbound funds are expected to continue net inflows in 2026. Driven by favorable policies such as accelerating technological innovation and expanding domestic demand, Hong Kong-listed companies’profitability is poised for substantive improvement, with the overall market expected to trend upward. Technological innovation will be a key investment theme. The Hang Seng Tech Index still offers significant valuation repair potential, with leading companies’earnings likely to show high prosperity. Coupled with a continued boom in mainland enterprises listing in Hong Kong, the vitality of Hong Kong’s tech innovation ecosystem will be further unleashed.   

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