FX.co ★ Hong Kong Shares Rally to Begin 2026

In the early trading hours of Friday, marking the first session of 2026, Hong Kong stocks experienced an upswing, climbing by 413 points or 1.6% to reach 26,043. This increase comes as a recovery from previous declines and puts the market on track for a weekly gain of approximately 1.0%, representing a second consecutive week of growth. The trading session resumed following the New Year holiday, and this momentum was supported by a rally in U.S. futures, further bolstered by significant year-end gains on Wall Street. Although U.S. equities did not match the impressive returns of the two preceding years due to an April downturn triggered by tariffs, the 2025 annual gains remained solid, propelled by the robust performance of the AI sector. Every component of the Hang Seng Index saw an advance, particularly in sectors such as technology, consumer goods, and property. Nonetheless, the upward movement was somewhat restrained by anticipation surrounding the upcoming November retail sales figures. Among notable performances, Baidu's stock surged by over 6% following their announcement of plans to separate its AI chip unit. Other significant movers included SMIC with a 4.6% rise, Trip.com up by 3.7%, Xiaomi gaining 2.7%, and Tencent advancing by 2.6%. In 2025, Hong Kong equities saw an impressive rise of nearly 28%, marking a second consecutive year of annual growth, underpinned by a vibrant IPO market, a reduction in Sino-U.S. trade tensions, and China's policies aimed at fostering economic growth.