Investing in Hong Kong stocks for real gains: Strategies and top stock picks for 2025

Why Hong Kong Stocks Deserve Attention

The Hong Kong stock market has a history spanning over 130 years, with more than 2,600 listed companies and a market capitalization of 135 trillion baht. This market is viewed as a key gateway to China’s leading technology companies such as Alibaba, Tencent, and Baidu. It also adheres to international standards and welcomes foreign investors broadly.

Basic Steps for Hong Kong Stock Investors

Choose the appropriate trading channels

Investors can choose from several methods, such as opening an account with a local securities firm that offers foreign stock services, using a secure online trading app, or investing through CFDs (Contract for Difference), which is suitable for beginners by checking fees, platform convenience, and data support.

Understand the structure of the Hong Kong market

The Hong Kong Stock Exchange (HKEX) operates from 9:30 AM to 4:00 PM Hong Kong time, with a lunch break from 12:00 PM to 1:00 PM. Investors should consider income tax and withholding tax on dividends, as well as the differences between H-Shares (Mainland Chinese companies), Red Chips (Companies owned by the Chinese government), and P-Chips (Private Chinese companies).

Fundamental analysis tools

Study P/E ratios to compare price-to-earnings, P/B ratios for price-to-book value, dividend payout ratios, and revenue growth rates. Review financial statements, industry outlooks, management quality, and specific risks.

Top 10 Hong Kong Stocks to Watch in 2025

Main Data Comparison Table

Tencent Holdings (0700.HK) - Tech Giant

A global technology company operating in various sectors including internet services, online gaming, social networks, artificial intelligence, and fintech. Key products include WeChat and leading online games. It also invests in global tech companies.

This year, profit is expected to grow from gaming and cloud computing businesses. The expansion of digital payment services in international markets is beginning to show results. Year-to-date total return is approximately 18%.

Alibaba Group (9988.HK) - E-commerce Hub

A Chinese tech company with diversified operations including e-commerce, cloud computing, logistics, and digital media. Organizational restructuring and spin-offs are beginning to show results. Cloud business is growing strongly. Increasing market share in Southeast Asia through local platforms remains a focus.

BYD Company (1211.HK) - Electric Vehicle Leader

A multinational manufacturer specializing in new energy vehicles. Sales of electric and hybrid vehicles have repeatedly exceeded expectations, especially in Europe. Expansion of battery factories helps reduce production costs. Blade Battery technology is widely recognized. The company estimates first-quarter net profit may nearly double compared to last year.

Xiaomi Corporation (1810.HK) - Innovation Technology Leader

Electronics manufacturer with a broad product range from smartphones and laptops to IoT devices. Smartphone business is recovering strongly. The launch of the first electric vehicle model has exceeded expectations. The smart home ecosystem continues to grow. Shares hit record highs in mid-March.

HSBC Holdings (0005.HK) - Global Financial Institution

A banking group serving all sectors with a long-standing relationship with Asia. Earnings are expected to grow from interest and fee income. Focused strategy on Asia yields good returns. Strong dividend policy is attractive to income investors.

Meituan (3690.HK) - Local Service Platform

A local shopping and service platform covering dining, delivery, travel, and other services. Expansion of food delivery and consumer goods services. Drone delivery technology is beginning to show business results. Domestic tourism platform growth remains strong.

Li Auto (2015.HK) - Electric Vehicle Pioneer

A car manufacturer specializing in expanding electric vehicle technology. Sales of new energy vehicles continue to grow. EREV (Extended-Range Electric Vehicle) technology is gaining popularity. Launching new lower-priced models to target new markets.

China Mobile (0941.HK) - Telecom Leader

A giant telecom company with 70% market share of China’s population. Main revenue from signal services, high-speed home internet, and TV signals. Growth driven by 5G services and data revenue. Cloud business expansion for enterprises is a new focus. Stable dividends and high yields attract income-focused investors.

AIA Group (1299.HK) - Asia Life Insurance Leader

A multinational insurance and financial group, the largest publicly listed life insurer in Asia-Pacific. Provides life, accident, health, and retirement planning. Growth centers on mainland China. Successful digital strategy and cross-border insurance sales recovery.

JD.com (9618.HK) - Leading Online Retailer

A Chinese e-commerce platform with over $152.8 billion in revenue, ranked 47th in Fortune Global 500. Improving profitability efficiency. Modern logistics infrastructure expansion. Growth in offline retail and healthcare services.

Investment Strategies for Hong Kong Stocks

Value Investing

Choose stocks with low P/E or P/B ratios compared to growth potential. Suitable for investors seeking truly undervalued stocks.

Growth Investing

Select stocks in technology, energy, or healthcare industries expected to have high revenue and profit growth in the future.

Dividend Investing

Pick stocks with high and consistent dividend payouts, ideal for those seeking regular income from investments.

How to Start Trading Hong Kong Stocks

Step 1: Open a trading account

Contact a local securities firm that offers foreign stock services. Check reputation, licensing, and fees. Open an account online or at a branch.

Step 2: Deposit funds and start learning

Deposit funds into the account. Use a demo account if available to practice and understand the mechanics.

Step 3: Analyze and select stocks

Read financial reports, news, and industry analyses. Use analysis tools and monitor trends.

Step 4: Invest with diversification

Avoid large investments in a single stock. Diversify across multiple stocks and industries to reduce risk.

Conclusion

The Hong Kong stock market in 2025 continues to offer opportunities for investors seeking growth and high returns. Understanding the mechanics, conducting thorough research, selecting stocks carefully, and diversifying investments will help you build a balanced and growth-potential portfolio. However, remember that investing involves risks. Study and evaluate your situation carefully before making investment decisions in Hong Kong stocks.