Hong Kong stocks extended gains as China held Politburo Meeting.

The Hang Seng Index rose 2.75% to 20412.48 as of 3.57pm local time. The Hang Seng Tech Index rose 4.27%.

China's Politburo Meeting said that China would implement more proactive fiscal policy and moderately loose monetary policy next year; would enrich and improve policy toolbox; would hold the bottom line of preventing systemic risks; to focus on boosting consumption, improving investment efficiency, and expanding domestic demand; would step up 'unconventional' counter-cyclical adjustments; would enhance support to improve people's livelihood.

China’s producer prices, which measure factory-gate costs, dropped by 2.5% from a year earlier in November, marking the 26th consecutive month of declines, the National Bureau of Statistics said on Monday.

Consumer prices rose by 0.2 per cent from a year earlier, slowing from a 0.3 per cent increase for the previous month, it said. The data fell short of the 0.4 per cent growth forecast in a Bloomberg survey of economists.

Xiaomi’s stock price has surpassed HK$30 for the first time in over three years. Sources indicate that Xiaomi is preparing for its third SUV model, the 'Kunlun.' This model will feature an extended-range powertrain, targeting a lower market segment, and is expected to officially launch in 2026.

As the final text for the US FY25 NDAA has not included the 'Biosecure Act' which blacklists Chinese biotech firms, WuXi Biologics rose 9.3%; WuXi AppTec rose 9.5%.

In terms of other star stocks, NetEase and Meituan rose 6%; NIO, Bilibili, and XPeng rose 5%; JD.com and Alibaba rose 4%; Tencent rose 2%.