SHANGHAI: China stocks held steady on Thursday as a rally in biotech stocks offset weakness in gaming and chip companies. Hong Kong shares declined, dragged by Wuxi Apptec, as concerns over geopolitical risks persisted.
China stocks fall as Country Garden drags property developers lower
-
China’s blue-chip CSI300 Index and the Shanghai Composite Index were roughly flat by the lunch break. Hong Kong’s benchmark Hang Seng Index was down 0.6%.
-
CSI 300 Healthcare Index rose as much as 3.6% in early trade on market talks of potential policy support for China’s biotech sector.
-
Shares of China’s pharmaceutical giant Hengrui and biotech company Beigene jumped 5.4% and 8.6%, respectively.
-
Shares of clinical trials and contract research firms also rose, with Tigermed Consulting up to a maximum of 20%.
-
In contrast to the broad healthcare stocks’ rally, sentiment over Wuxi Apptec and Wuxi Biologics weakened further as a US-based biotech trade association is taking steps to “separate” from Chinese member Wuxi AppTec, sending both shares down more than 8%.
-
CSI Non-ferrous Metal Index and Hang Seng Composite Materials Index rose as much as 3.9% and 5.9%, respectively.
-
Chinese top copper smelters on Wednesday came to a rare agreement to jointly embark on production cuts at some loss-making plants as they seek to cope with a shortage of raw material, according to sources with knowledge of the plans.
-
Gaming and semi-conductor shares dropped 3% and 1.2%, respectively.
-
Foreign capital net buying via the northbound link of the Stock Connect programme logged 3.1 billion yuan ($431 million), on track for the fifth consecutive session of inflows.
-
Analysts at HSBC said in a note that current cheap valuations, low foreign participation rate, and policy stimulus are among the reasons that would attract foreign investors to China’s onshore shares.
Comments