Hong Kong stocks closed higher in their last full day of trading of 2025 as investors placed bets on the direction of regional economies in the coming year.

The Hang Seng Index rose by around 219.37 points, or roughly 0.9%, to end at 25,854.60. The Hang Seng China Enterprises Index increased by 99.31 points, or nearly 1.1%, to 8,891.02.

Hong Kong markets will close early Wednesday, and will be off on Thursday on account of the New Year's holiday.

The Hang Seng Index is on its way to return almost 30% in gains to investors this year, marking its best annual performance since 2017, the South China Morning Post reported. According to the report, the rally could extend into 2026 assuming Beijing takes more forceful stimulus measures and the U.S. Federal Reserve continues its monetary easing policy.

In corporate news, six companies made their market debut in Hong Kong.

Beijing 51World Digital Twin Technology (HKG:6651) had a solid debut as shares were up nearly 30% at close to HK$39.62 from their IPO price of HK$30.50.

Tencent Holdings-backed (HKG:0700) InSilico Medicine (HKG:3696) jumped 25% after shares closed at HK$29.98, compared with their IPO price of HK$24.05.

USAS Building System (HKG:2671) saw its shares close at HK$7.64, nearly 8% higher than its IPO price of HK$7.10 per share, while Shanghai Forest Cabin Cosmetics (HKG:2657) closed at HK$85, 9% higher than its IPO price of HK$77.77 per share.

Shenzhen Xunce Technology (HKG:3317) and OneRobotics (Shenzhen) (HKG:6600) had tepid stock market debuts as their shares closed largely unchanged from their IPO price of HK$48 and HK$73.80, respectively.