Hong Kong stocks closed higher on Tuesday. The Hang Seng Index rose 0.9%, and the Hang Seng Technology Index rose 1.7%.

Baidu rose 9%; Ubtech Robotics up 8%; SMIC up 4%; Nio, Xiaomi up 2%; Alibaba, Tencent, JD.com up 1%; Pop Mart fell 5%.

Trading was light before the New Year’s Day holiday. Turnover on the city’s exchange was about 50 per cent below the 180-day average for this time of the day, according to Bloomberg data. Hong Kong’s markets will be closed for the afternoon session on Wednesday and for the full day on Thursday.

The Hang Seng Index is poised to end the year with an almost 30 per cent gain for its best annual performance since 2017, after global investors returned amid receding geopolitical tensions and China growth supported by resilient exports. For the rally to extend into 2026, investors need more faith in forceful stimulus measures from Beijing and further monetary easing by the Federal Reserve to extend the already stretched valuations of tech companies.

“The foundation for China’s economic recovery still needs to be consolidated,” said Zhao Yang, an analyst at Sealand Securities. “But looking forward, some catalysts could be on the way, such as a cut in the banks’ reserve requirement ratio in China in January, more support for the property market and the boost to Fed rate cuts by its new chair.”