{Economic Information Daily News, 23rd} Tensions between the U.S. and Iran continue to ease, with Saudi Arabia resuming its east-west oil pipeline restoring energy supply. Although international oil prices remain high, they have significantly retreated. Additionally, U.S. President Trump stated that talks between the U.S. and Iran at the United Nations conference progressed well, and he expressed plans to arrange another meeting. However, ahead of President Xi Jinping's visit to the U.S., Hong Kong stocks trended weaker. The Hang Seng Index opened lower, with losses quickly widening and breaking below the 25,000 level, while trading volume sharply narrowed to HKD 184.3 billion. The Hang Seng Index closed the day at 24,834, down 253 points or 1%. The Hang Seng China Enterprises Index closed at 8,273, down 88 points or 1.1%. The Hang Seng Tech Index closed at 4,379, down 59 points or 1.3%.
After three consecutive days of gains, the Hang Seng Index turned downward again. Trading volume and northbound fund inflows also narrowed correspondingly. However, the index still held above the psychological support level of 24,800, and the downtrend is not yet confirmed. With the upcoming meeting between Chinese and U.S. leaders, referencing stock market performance before and after the previous 'Xi-Trump meeting,' the Hang Seng Index has potential for a short-term rebound. If trading volume data can support an increase, an upward trend could gradually be established. Currently, the initial upside target is around 25,400 points, the closing level on September 7, while support is located near 24,700 points.
*AI sector hit by investigation news; property stocks rise*
It was reported that Chinese internet regulators are investigating data breaches involving DeepSeek and Moonshot AI. Ahead of the Xi-Trump meeting, tech stocks were under pressure. Alibaba (09988) led blue-chip declines, falling 4.4% to HKD 109.80; Xiaomi (01810) dropped 3.7% to HKD 26.18; Tencent (00700) fell 2.3% to HKD 441; Kuaishou (01024) declined 1.4% to HKD 30.78; Meituan (03690) dipped 0.5%; Zhipu (02513) plunged 12.4% to HKD 650; MiniMax (00100) fell 4% to HKD 275; SenseTime (00020) dropped 1.6% to HKD 1.245.
It was rumored that Chinese regulators have asked some banks not to classify Vanke's (02202) overdue loans as non-performing. Property stocks generally rose: Vanke gained 4% to HKD 2.60; Longfor (00960) rose 0.5% to HKD 5.66; China Overseas (00688) advanced 1.7% to HKD 12.64; Country Garden (02007) increased 2.2% to HKD 0.183; Sunac China (01918) was unchanged at HKD 0.655.
*Sino Biopharmaceutical's earnings expected to reach new heights*
Recently, the biotech sector has regained investor interest. Earlier reports indicated that the U.S. might retain pharmaceutical companies' ability to sign most drug licensing agreements with Chinese firms, suggesting Washington may allow U.S. pharmaceutical companies to invest in new drugs under development in China, safeguarding the overseas prospects of mainland biotech enterprises. Valuations within the sector could thus rise again.
Sino Biopharmaceutical (01177) recently announced its interim results, showing net profit increased by just over 1% year-on-year, but overall performance still had highlights. Innovative drug revenue reached RMB 7.81 billion, a substantial year-on-year increase of 29.2%. Recently, the company received acceptance for two new drug applications in mainland China, expected to further drive growth in innovative drug revenue.
Regarding outbound licensing business, although it currently accounts for only about 5% of total revenue, it has shown improvement compared to last year's 0.3%. Furthermore, in July, the group granted overseas rights for a new respiratory drug to AstraZeneca through its subsidiary CP Guojian, potentially receiving up to USD 2.1 billion (plus sales royalty income). The group has also deepened its exclusive strategic partnership with GlaxoSmithKline, and licensing revenue is expected to record significant growth in the second half of the year. If the company can further benefit from easing policies on innovative drug licensing, its performance is expected to reach new heights.
From a technical perspective, Sino Biopharmaceutical has shown a clear uptrend since the end of August. Calculated from the closing price of HKD 4.72 on August 19 before the uptrend began, the stock has risen by 20% so far. However, the stock price has seen notable pullbacks in the last two trading sessions. Investors may consider positioning near the 10-day and 20-day moving average support levels (around HKD 5.50) if the price falls further. The initial target is the 250-day moving average at around HKD 6.00. If the stock can stabilize above that level, the next target could be the April 8 high of approximately HKD 6.46. (am)
After three consecutive days of gains, the Hang Seng Index turned downward again. Trading volume and northbound fund inflows also narrowed correspondingly. However, the index still held above the psychological support level of 24,800, and the downtrend is not yet confirmed. With the upcoming meeting between Chinese and U.S. leaders, referencing stock market performance before and after the previous 'Xi-Trump meeting,' the Hang Seng Index has potential for a short-term rebound. If trading volume data can support an increase, an upward trend could gradually be established. Currently, the initial upside target is around 25,400 points, the closing level on September 7, while support is located near 24,700 points.
*AI sector hit by investigation news; property stocks rise*
It was reported that Chinese internet regulators are investigating data breaches involving DeepSeek and Moonshot AI. Ahead of the Xi-Trump meeting, tech stocks were under pressure. Alibaba (09988) led blue-chip declines, falling 4.4% to HKD 109.80; Xiaomi (01810) dropped 3.7% to HKD 26.18; Tencent (00700) fell 2.3% to HKD 441; Kuaishou (01024) declined 1.4% to HKD 30.78; Meituan (03690) dipped 0.5%; Zhipu (02513) plunged 12.4% to HKD 650; MiniMax (00100) fell 4% to HKD 275; SenseTime (00020) dropped 1.6% to HKD 1.245.
It was rumored that Chinese regulators have asked some banks not to classify Vanke's (02202) overdue loans as non-performing. Property stocks generally rose: Vanke gained 4% to HKD 2.60; Longfor (00960) rose 0.5% to HKD 5.66; China Overseas (00688) advanced 1.7% to HKD 12.64; Country Garden (02007) increased 2.2% to HKD 0.183; Sunac China (01918) was unchanged at HKD 0.655.
*Sino Biopharmaceutical's earnings expected to reach new heights*
Recently, the biotech sector has regained investor interest. Earlier reports indicated that the U.S. might retain pharmaceutical companies' ability to sign most drug licensing agreements with Chinese firms, suggesting Washington may allow U.S. pharmaceutical companies to invest in new drugs under development in China, safeguarding the overseas prospects of mainland biotech enterprises. Valuations within the sector could thus rise again.
Sino Biopharmaceutical (01177) recently announced its interim results, showing net profit increased by just over 1% year-on-year, but overall performance still had highlights. Innovative drug revenue reached RMB 7.81 billion, a substantial year-on-year increase of 29.2%. Recently, the company received acceptance for two new drug applications in mainland China, expected to further drive growth in innovative drug revenue.
Regarding outbound licensing business, although it currently accounts for only about 5% of total revenue, it has shown improvement compared to last year's 0.3%. Furthermore, in July, the group granted overseas rights for a new respiratory drug to AstraZeneca through its subsidiary CP Guojian, potentially receiving up to USD 2.1 billion (plus sales royalty income). The group has also deepened its exclusive strategic partnership with GlaxoSmithKline, and licensing revenue is expected to record significant growth in the second half of the year. If the company can further benefit from easing policies on innovative drug licensing, its performance is expected to reach new heights.
From a technical perspective, Sino Biopharmaceutical has shown a clear uptrend since the end of August. Calculated from the closing price of HKD 4.72 on August 19 before the uptrend began, the stock has risen by 20% so far. However, the stock price has seen notable pullbacks in the last two trading sessions. Investors may consider positioning near the 10-day and 20-day moving average support levels (around HKD 5.50) if the price falls further. The initial target is the 250-day moving average at around HKD 6.00. If the stock can stabilize above that level, the next target could be the April 8 high of approximately HKD 6.46. (am)
