Hang Seng Index Corporation: Hang Seng Index to rise by 27.8% in 2025, the best performance since 2017.

On December 31, Hang Seng Index Company released the "2025 Year-End Market Summary Report". In 2025, the Hong Kong stock market represented by the Hang Seng Index (HSI) rose by 27.8%, the best performance since 2017. After recording a 17.7% increase in 2024, the HSI steadily rose for most of 2025, except for a slight downturn at the end of March due to trade conflicts. The upward trend in 2025 was composed of several major factors, including record fund inflows from the Hong Kong stock connect, anticipation of future development in artificial intelligence, and interest rate cuts. In 2025, the HSI outperformed two other flagship indices - the Hang Seng H-Share Index ETF (H-Share) and the Hang Seng Technology Index (Technology Index), which rose by 22.3% and 23.5% respectively. It is worth noting that futures tracking the Hang Seng Biotechnology Index were launched in November, and this index rose by 64.5% in 2025. In 2025, the HSI added 6 new constituent stocks, bringing the total number of constituent stocks to 89, steadily moving towards its goal of reaching 100 constituent stocks. The HSI Volatility Index and the Hang Seng H-Share Volatility Index both reached yearly highs in early April, at 47.0 and 52.6 points respectively, before dropping to 19.0 and 20.8 points by the end of the year. In the flagship indices derivative index, the HSI ESG Enhanced Index outperformed the HSI, with a 30.3% increase in 2025. The Hang Seng Technology Index 15% Target Option Fund Call Index recorded slightly higher returns than the Technology Index, reaching 25.4%. In 2025, the Hang Seng Composite Index (Hang Seng Composite) rose by 31.0%. Among the Hang Seng Composite, mid-cap stocks rose by 31.6%, outperforming large-cap (+30.8%) and small-cap stocks (+28.8%). Within the industry indices of the Hang Seng Composite, the materials sector performed the best, rising by 161.3%, while utilities were the worst-performing sector, with a 5.7% increase. In terms of theme indices listed in Hong Kong, the Hang Seng Hong Kong Stock Connect Innovative Medicine Index and the Hang Seng Healthcare Index performed the best, with annual increases of 64.0% and 57.0% respectively. Regarding mainland-listed and cross-market theme indices, the Hang Seng A Share Power Equipment Index and the Hang Seng Hong Kong-US Biotechnology Index rose by 72.3% and 53.9% respectively. In the High Dividend Index, the Hang Seng High Dividend 30 Index ETF30 index outperformed, with a 38.1% increase in 2025. In terms of ESG indices, the Hang Seng Climate Change 1.5C Target Index performed well, with an annual increase of 31.2%.