Hong Kong and China markets rise on rally in pharmaceutical stocks, vaccines progress
- The Hang Seng Index, which posted its biggest rally in a month on Wednesday, closed 0.8 per cent higher
- The Shanghai Composite Index advanced by 1.1 per cent and recorded its biggest gain since December 1
The markets in Hong Kong and China were on Thursday boosted by strong rallies in stocks of pharmaceutical companies, as investors bet on certain medicines being included into a list of drugs that China’s official health insurance will cover.
The Hang Seng Index, which posted its biggest rally in a month on Wednesday, closed 0.8 per cent higher at 26,678.38. In China, the Shanghai Composite Index advanced by 1.1 per cent to 3,404.87, recording its biggest gain since December 1.
Sino Biopharmaceutical led the gains in Hong Kong and rose 7.8 per cent, followed by Wuxi Biologics, which climbed 6.5 per cent.
Technology stocks also rose, with the Hang Seng Tech Index advancing 2.3 per cent. Hua Hong Semiconductor surged by 7.4 per cent, NetEase rose 4.4 per cent and e-commerce giants JD.com and Alibaba Group Holding, which owns this newspaper, added 3 per cent and 2.8 per cent, respectively.
“Before the end of the year, the Hang Seng Index is likely to hover at around 26,000 to 27,000, if there’s no particular positive news. Some funds are already wrapping up their annual investments,” said Kingston Lin, director of AMTD securities brokerage in Hong Kong. “The market doesn’t have a specific direction of late.”
In Shanghai, Jiangsu Hengrui Medicine soared by 8.4 per cent to 105.18 yuan, a record high, after Chinese media reported that the company had successfully bid for its anti PD-1 medicines to be included in the list of drugs covered by China’s official health insurance. Tibet Rhodiola Pharmaceutical Holding surged by the daily cap of 10 per cent, while North China Pharmaceutical added 6.4 per cent.