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Pharmaceutical shares rebounded. Hong Kong market edged higher
The market opened lower on Wednesday. Hang index opened down 124 points, H share index down 61 points and technology index down 63 points. Meituan lost 1.78% for 22-point loss. HSB...
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Pharmaceutical shares rebounded. Hong Kong market edged higher
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The market opened lower on Wednesday. Hang index opened down 124 points, H share index down 61 points and technology index down 63 points. Meituan lost 1.78% for 22-point loss. HSBC lost 0.87% for 17-point loss. Alibaba lost 1.57% for 28-point loss. AIA lost 0.83% for 11-point loss. Mainland developers lost the most ground. Country Garden lost 6.2% and Longfor lost 4.3% to lead the losers. Li Auto turned from loss to profit of RMB3.2 billion in the first half of 2023, but share price fell 8.75%. Shanghai composite index opened down 10 points. Auto shares fell. BYD lost 2.2%. Geely lost 1.54%. Li Auto lost 7.1%. XPeng lost 2.65%. China’s July CPI came in at -0.3%, better than expected -0.4%. PPI came in at -4.4%, better than the June figure of -5.4%. Hong Kong shares rose on the news. Hang Seng index lost under 100 points. Pharmaceutical shares rebounded. Sino Biopharm rose 2.9%. CSPC rose 2.6%. Wuxi Biologics rose 2.6%. Hansoh Pharm rose 1.8%. The top four blue chip gainers were all pharmaceutical shares. The market turned from loss to gain in midmorning. Alibaba rose 1.2% for 21-point gain. Wuxi Biologics rose 3.35% for 10-point gain. L’Occitane was suspended from trading pending a privatization offer from its chairman. Shanghai composite index closed the morning down 12 points. Hang Seng index closed down 11 points, H share index down 10 points and technology index down 28 points. Turnover was $45.8 billion.

The market was little changed in the afternoon. Hang Seng index was down under 50 points. Alibaba rose 0.8% for 15-point gain. On the other hand, HSBC lost 1% for 20-point loss. AIA lost 1.3% for 18-point loss. Country Garden lost 2.65% and CG Services lost 2.6% to become the top losers. However pharmaceutical shares rose the most. Hansoh Pharm rose 4.4%; Sino Biopharm rose 3.55%. and CSPC rose 3.3%. They were the top three gainers. Cansino entered into production agreement with Astra Seneca to produce vaccine for the latter. Share price soared 17%. Ascentage’s cancer drug received permission from FDA to conduct third stage clinical trials. Share price rose 14%. CM Bank lost 2.2% due to expected write-off on property loans and became the top loser. However, CCB rose 0.7%. CNOOC rose 1.4% and Sinopec rose 0.9% on higher crude oil prices. Shanghai composite index closed down 16 points. Hang Seng index closed up 61 points, H share index up 25 points and technology index down 0.5 point. Turnover was $85 billion.

Overnight, European markets rose. DAX rose 77 points. CAC rose 52 points and FTSE rose 60 points. US markets fell for the second straight day. Dow Jones lost 191 points. S & P lost 31 points and Nasdaq lost 162 points. Hong Kong ADR’s lost 108 points in New York. Night future lost 68 points. We expect the market to fall today.  
 
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