SMIC, Pop Mart lead Hong Kong stocks higher

Hong Kong stocks rose on December 22, with the Hang Seng Index up 0.3% to 25,760.4 as of 9:55 a.m. local time.

The Hang Seng Tech Index climbed 0.9%, while the CSI 300 Index in mainland China rose 0.8%, and the Shanghai Composite Index added 0.6%.

Chipmaker SMIC led gains, jumping 4.2%, followed by Pop Mart International up 3.4%, Alibaba up 2.1%, and Baidu up 2%.

Losses were seen in Innovent Biologics, which fell 1.3%, ZTO Express down 1.4%, NetEase down 0.8%, and Xiaomi down 1%.

Four companies debuted in Hong Kong trading, with shares of Nanhua Futures, B&K, BenQ BM Holding, and Impression Dahongpao all falling on their first day.

Trading in Hong Kong will be shortened for the Christmas holiday, closing early on Wednesday, and remaining shut on December 25 and 26.

Japan’s Nikkei 225 rose 2.1%, South Korea’s Kospi climbed 1.9%, and Australia’s S&P/ASX 200 increased 0.9%.

🔗 Source: South China Morning Post

🧠 Food for thought

Implications, context, and why it matters.

SMIC and Hong Kong tech rally on easing hopes

SMIC rose 4.2% while the Hang Seng Tech Index added 0.9% as traders bet on monetary easing by China’s central bank next year amid a slowing economy 1.
Chipmakers in China are tapping the initial public offering (IPO) market to fund technology self-reliance and AI 1, which signals confidence in longer-term support for semiconductors.
The CSI A500 Index, a mainland A-shares benchmark, has gained nearly 20% in 2025 versus 16% for the CSI 300 2.
Record 8.7 billion yuan went into CSI A500 exchange-traded funds (ETFs) on December 18 2, with year-end targets likely at play and net buying steadier this month 2.

ETF firms and wealth platforms should track China tech flows

Hong Kong-listed ETFs earned about US$247 million from January to November 26, while CSOP Asset Management’s Hang Seng Tech ETF drew over $3.4 billion in inflows and generated $54 million 3.
Fixed income ETFs took in $407.68 billion by end-November versus $299.02 billion in 2024, and commodities ETFs drew $90.33 billion versus $5.02 billion last year 4.
Actively managed ETFs recorded $581.25 billion of year-to-date inflows by end-November versus $331.83 billion in 2024 4, so advisors and wealth platforms with China tech strategies may see stronger client interest if the rally lasts into 2026.
China-linked products drove 45% of ETF revenue in Hong Kong 3. Sales partners such as brokers and private banks plus fintech platforms can time launches or campaigns around steady flows.