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Wednesday marks the last trading day of 2025, with the Shanghai Composite Index closing at 3,968.84 points, marking its 11th straight daily gain and hitting its highest closing level in nearly 18 years, the Securities Times reported on Wednesday.

For the A-share market, the Shanghai Composite Index rose 18.41 percent for the full year, marking its largest annual gain in the past six years. The Shenzhen Component Index and CSI 300 Index recorded annual gains of 29.87 percent and 17.66 percent, respectively, while the ChiNext Index and STAR 50 Index posted gains of 49.57 percent and 35.92 percent, respectively, according to the report.

Also on Wednesday, the Hong Kong stock market closed early due to the New Year's Day holiday. The Hang Seng Index fell 0.87 percent on Wednesday but ended the year with a gain of 27.77 percent, marking its best annual performance since 2017. The Hang Seng Tech Index dropped 1.12 percent on Wednesday but rose 23.45 percent for the full year, delivering its strongest annual performance since 2020, said the report.

"We expect the Chinese stock market to usher in another bountiful year in 2026, as many favorable driving factors in 2025 will continue to support the market, including development in innovative sectors, especially AI," Wang Zonghao, head of China equity strategy research at UBS, said in a note sent to the Global Times.

In addition, supportive policies for private enterprises and the capital market as well as potential capital inflows from domestic and international institutional investors will boost the Chinese stock market, Wang said. "We remain bullish on the internet, hardware technology, and securities brokerage sectors," the expert added.

Global Times