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Hong Kong stocks slip from 4-year high amid fears of US sanctions on Chinese drug makers

The Trump administration has been discussing severe restrictions on medicines from China, according to The New York Times

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Hong Kong stocks fell on Thursday. Photo: EPA
Zhang Shidongin Shanghai
A rally that sent Hong Kong stocks to the highest level in four years took a breather, as Chinese drug makers took a pounding amid fears that the Trump administration would impose fresh curbs on medicine exports from the country.

The Hang Seng Index closed 0.4 per cent lower at 26,086.32 on Thursday, trimming a decline of as much as 1.2 per cent. The Hang Seng Tech Index slipped 0.2 per cent.

A rebound in mainland stocks helped to ease the selling pressure in the city. The CSI 300 Index climbed 2.3 per cent and the Shanghai Composite Index added 1.7 per cent. Both gauges posted the biggest gains since March 14. The Star Market 50 index of stocks on Shanghai exchange’s tech board surged 5.3 per cent, recovering all the loss from a major sell-off last week.

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Hansoh Pharmaceutical Group plunged 8.8 per cent to HK$35.20 and CSPC Pharmaceutical Group tumbled 7.5 per cent to HK$10.12. WuXi Biologics sank 4.3 per cent to HK$36 and affiliate WuXi AppTec shed 5.7 per cent to HK$108.60. Tempering the losses, Alibaba Group Holding advanced 0.4 per cent to HK$143.30 after the e-commerce giant said it planned to raise US$3.2 billion in what would be the world’s biggest offering of convertible notes this year.
A draft order issued by the Trump administration called for boosting production of medicines in the US. Photo: Shutterstock
A draft order issued by the Trump administration called for boosting production of medicines in the US. Photo: Shutterstock

The Trump administration has been discussing severe restrictions on medicines from China, The New York Times reported on Wednesday, citing a draft executive order that threatened to cut off the pipeline of Chinese-invented experimental treatments.

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