Zhitong Hong Kong Stock Exchange Unravels | The full year performance of Hong Kong stocks in 2025 is strong, and aerospace is booming
[Anatomy Dashboard]
Today is the last trading day of 2025, and the Hang Seng Index fell slightly by 0.87%. Looking at the whole year, it's also pretty good. The Hang Seng Index climbed from about 1,600 points at the beginning of the year to 25,630 points, rising 27.77% throughout the year, making it the best annual result in five years. The IPO market is also strong. In 2025, the annual IPO scale of Hong Kong stocks will reach HK$286.3 billion, returning to number one in the world.
Hong Kong stocks still have to look at the face of US stocks. On the 30th local time, the minutes of the Federal Reserve's recent meeting show that the Federal Reserve generally agreed to cut interest rates at the December meeting, but serious differences have already arisen within the Federal Reserve officials. According to some predictions, the Federal Reserve may only cut interest rates once more next year. Moreover, the Federal Reserve is likely to keep interest rates unchanged for some time to come, until new data shows that inflation falls again or the unemployment rate rises more than expected. Foreign investment sentiment is low, and domestic investors' dominant types, such as banks and insurance, are generally recovering today because they already gained strength yesterday, but today overall they are weak.
The media quoted sources as saying that the US Department of Commerce's Bureau of Industry and Security has revised its policy to allow Samsung and SK Hynix to export chip equipment to their factories in China, requiring only annual approval. This does not indicate that America's attitude has changed, but because the current situation is pressing, because Changxin Storage is about to go public. On the evening of December 30, according to the official website of the Shanghai Stock Exchange, Changxin Technology Group Co., Ltd.'s IPO application for the Science and Technology Innovation Board was officially accepted. Both Samsung and Hynix have factories in China. If sales are still banned, it means that our market share will be encroached upon by us, and supply will inevitably become even more tight under the ban, which will trigger inflation in the US.
There is also an advantage today. The “Notice on Implementing Large-scale Equipment Renewal and Consumer Goods Trade-In Policies in 2026” issued by the National Development and Reform Commission and the Ministry of Finance was released to the public on December 30, clarifying the scope of support, subsidy standards, and work requirements for the 2026 “two new” policies. However, this benefit did not cause waves in the market. The main reason was that the 2026 subsidy was cut in half: the subsidy ratio was cut in half: the subsidy ratio was cut from 20% to 15%, the upper limit of a single item was 2000→1,500 yuan, the categories were cut from 12 categories to 6 categories (kitchen appliances/dishwashers, etc.), the initial capital of 62.5 billion yuan was 23% lower than the previous year, and the 2025 subsidy has already overdrawn a large amount of demand. As a result, Midea Group (00300) and Hisense Home Appliances (00921) all rallied slightly and then declined.
However, one highlight of this policy is that compared to the 2025 policy, smart glasses were included in the scope of support in 2026, which is an obvious incremental part. Related concept stocks such as Connett Optics (02276): It is one of the few manufacturers in the world that can mass-produce 1.74 ultra-high refractive index lenses on a large scale. The company is the exclusive lens supplier for Ali's “Quark AI glasses”, and is expected to use Goertek's customer channels to quickly enter the smart glasses supply chain of the world's leading technology giants. Today's increase was more than 4%. Other types of TCL Electronics (01070) and Shunyu Optical Technology (02382) rose slightly.
Overall, there are no outstanding varieties today. The ones with good increases are all varieties with small market capitalization; many of them have increased their market capitalization. What is a bit more sustainable is the Agent concept mentioned yesterday. On December 30, Meta announced the acquisition of AIAgent product Manus at a price of several billion dollars, triggering a “butterfly effect”. As a leading AI+ SaaS marketing and sales company in China, the company further empowers core product scenarios such as marketing and sales in the context of AIAgent's accelerated penetration. In the future, the company is expected to continue to consolidate its product capabilities and expand overseas markets through the “endogenous+outreach” strategy, form a two-wheel drive between small and medium-sized enterprises and large customers, and gradually target overseas leaders such as HubSpot and SalesForce. Today it has risen again by more than 5%.
It is worth mentioning the aerospace concept. This topic is extremely active in the A-share market and has become a mainstream sector, and the Hong Kong stock market has not set off a big boom due to the lack of authentic national listed companies. Only a few individual stocks in the industrial chain are strengthening. The leading products that have strengthened recently are mainly CIMC Enrique (03899). The company is the core supplier of rocket propellant storage and transportation: mainly engaged in liquid oxygen/liquid hydrogen/methane cryogenic storage tanks+filling systems (just needed for space launch). In July of this year, 9 large liquid oxygen storage tanks were delivered to commercial aerospace projects. Use Jiuquan/Xichang launch sites; 2025 The aerospace business is already profitable: revenue+ on-hand orders exceed 100 million yuan, half of which come from overseas, supplying leading organizations such as Aerospace Science and Technology Group and Oriental Space, and the products meet American Aerospace ASME standards; high technical barriers: liquid hydrogen storage tanks can keep an ultra-low temperature of -252.87℃, and it is one of the few domestic enterprises that can deliver space-grade cryogenic equipment in batches. High level consolidation today.
Another Junda Co., Ltd. (02865): The subject is space computing power. The space photovoltaic market has huge potential. The low-orbit satellite sector alone is expected to generate trillions of dollars in production value, while the market space for space computing power centers is even wider. The company has reached a strategic cooperation with Shangyi Optoelectronics to invest in shares in Shangyi Optoelectronics as a strategic shareholder. The two sides will deeply integrate industry and scenario resources and cooperate on the application of perovskite battery technology in space energy. Shangyi Optoelectronics has a technical background at the Shanghai Institute of Optoelectronics of the Chinese Academy of Sciences and is a scarce satellite battery manufacturer in China. The core team has been deeply involved in the aerospace application of perovskite for many years. It is expected to enjoy dividends in the field of space computing power, rising nearly 5% today.
Others revolve around holiday spending. For example, the airline industry benefited from the collective strengthening of orders on New Year's Day and Spring Festival. See section focus for details. In terms of film and television, according to data from Lighthouse Pro Edition, as of December 28, the total box office of Lunar New Year movies in 2025 had broken the 5 billion yuan mark. It is worth mentioning that this achievement hit a box-office high in the past 8 years for the same period. Looking at the whole year, according to statistics from the National Film Administration, as of 14:30 on December 13, 2025, the total box office of domestic films had broken the 50 billion yuan mark, and the total number of movie viewers was 1,194 million. Damai Entertainment (01060) and Maoyan Entertainment (01896) both increased by more than 4%.
Zhou Liufu (06168) announced in November that it will launch a new cooperation model for joint ventures, which is to join forces with franchisees to jointly invest in the opening and operation of three good stores (excellent location, high-quality products, excellent operation). This model is expected to diversify investment risks and stimulate enthusiasm for opening stores. It is expected to lead to an increase in the number of stores and an increase in single store revenue, and have a positive effect on the Group's performance. Additionally, it is proposed to seek an authorization from the shareholders' meeting to authorize the board of directors to repurchase H shares. The total amount must not exceed 10% of the total number of H shares. If the bottom falls, it is easy to rebound; today it has risen by more than 7%.
[Section Focus]
According to 2026 New Year's Day holiday data, residents' desire to “travel on New Year's Eve” has increased significantly, bringing real business growth to the aviation industry. Air travel data at 12.29: On New Year's Day, domestic air ticket bookings exceeded 3.54 million, and the total number of inbound and outbound air tickets exceeded 720,000. The average price of economy class tickets (excluding tax) for the 2026 New Year's Day holiday was about 597 yuan to 669 yuan, an increase of 6.7% to 8.2% over 2025.
In addition to strong demand, pressure on the airline's cost side has also been clearly relieved, such as falling oil prices: the price of Brent crude oil fell from an earlier high, effectively reducing the pressure on fuel costs for airlines.
RMB appreciation: The recent strengthening of the RMB exchange rate against the US dollar means significant exchange gains for domestic airlines that have large dollar debts to buy aircraft, which helps improve financial performance. After the New Year's Day holiday, it will be immediately followed by the Spring Festival holiday, which will continue to be catalytic for aviation stocks.
The main varieties of Hong Kong stocks: Eastern Airlines (00670), China Southern Airlines (01055), Air China (00753).
[Individual Stock Mining]
China Eastern Airlines (00670): Strong holiday air travel, airlines will experience a sharp rise in volume and price
The number of domestic air ticket reservations for the New Year's Day holiday exceeded 1.76 million, an increase of about 46% over the previous year; the number of inbound and outbound ticket reservations exceeded 620,000, an increase of about 18% over the previous year. The company achieved net profit of 2.03 billion yuan attributable to shareholders of the parent company. Compared with a loss of 138 million yuan in the same period last year, the company successfully turned a loss into a profit.
Comment: Air travel was popular during the New Year's Day holiday, and peak passenger traffic ticket prices for the Spring Festival travel season can be expected. Fuel prices and exchange rates help airlines cut costs, and the three major airlines still have strong passenger occupancy rates during the off-season. After several years of losses, the three major state-owned airlines all achieved profits in the first three quarters of this year. The company lost money for 5 years, turning a loss into a profit in the first three quarters of 2025. More importantly, it earned 3.5 billion dollars in a single quarter in Q3, an increase of 34% over the previous year. In the first three quarters, the increase in the company's passenger turnover (in terms of passenger kilometers of revenue) on international routes was significantly higher than that of domestic routes. China Eastern Airlines showed year-on-year increases of 24.16% and 6.08%, respectively. Major passenger transportation operating data such as passenger capacity investment, passenger turnover, and passenger occupancy rates of the three major airlines all showed a year-on-year upward trend. China Eastern Airlines' passenger capacity investment in September increased 3.63% year on year; passenger turnover increased 8.67% year on year; passenger occupancy rate was 87.57%, up 4.06 percentage points year on year. China Eastern Airlines continued to gain strength in the international market this year, opening and encrypting new international and regional routes, becoming the domestic airline with the largest number of international destinations.
In the near future, China Eastern Airlines will also open the Shanghai Pudong-Auckland-Buenos Aires route to open up a major south-bound corridor. This route will also set a new record for the longest one-way route in the world. The company optimizes and develops the international aviation network, continues to promote transit and intermodal services, and continuously enhances its core competitiveness. Coupled with the reduction in costs brought about by falling oil prices, airline profits may increase further. As the scope of visa-free visas continues to expand, the demand for international travel and communication is constantly being activated. Passenger occupancy rates in the industry continue to be high, and domestic and foreign routes are booming. Recently, ticket prices have been continuously adjusted, and airline unit seating capacity has been significantly restored. China's airline ticket prices are expected to rise steadily in 2026. Furthermore, the decline in oil prices and the appreciation of the RMB will help airlines release performance.