Biotech Akeso Surges On AstraZeneca Deal
5 Min. Read Time
Key News
Asian equities were mostly lower overnight, though Mainland China's STAR (Science & Technology) Board and Shenzhen managed gains, while Malaysia and Hong Kong underperformed.
Mainland China and Hong Kong both experienced low, pre-holiday volumes overnight, as Hong Kong's volume was 70% of the one-year average, while Mainland China's volume was less than 40% of the one-year average. The technology hardware rebounded from yesterday's sell off in Hong Kong, where it led gains, though both markets exhibited a slight growth bias. The tiny less than $2 billion net purchases of Hong Kong-listed stocks and ETFs from Mainland investors via Southbound Stock Connect contributed to the low volumes overnight.
China-based biotech firm Akeso surged 15.5% after AstraZeneca invested $2 billion in Summit Therapeutics, a key partner for Akeso's international licensing. The deal will allow for Summit's cancer therapy ivonescimab, which was developed by Akeso and licensed to Summit, to enter into collaborative trials with AstraZeneca to explore whether it can be combined with AstraZeneca's existing therapies to achieve better results. This is further evidence of China rapidly becoming a hub for medical innovation.
BYD fell -2.5% overnight after lowering the pricing of its autonomous driving technology. Internet stocks were mostly lower overnight, though KE Holdings gained 1.2% on new policy support for real estate.
Real estate was the top-performing sector in both Hong Kong and Mainland China overnight. The Ministry of Finance (MoF), People's Bank of China (PBOC), and the National Financial Regulatory Administration (NFRA) detailed a new residential mortgage interest subsidy overnight, which is due to take effect on October 1st. The new subsidy will offer a 1% rate reduction for home loans that meet certain criteria. Additionally, a State Council meeting transcript indicated new measures are under consideration for stabilizing the housing market and supporting domestic consumption, with the read out saying that the State Council will “step up counter-cyclical adjustments". Multiple brokers noted that this is the strongest signal so far this year of a potential domestic stimulus package.
China's central bank lowered the pledged supplementary lending (PSL) rate by 0.25% overnight. It also expanded the scope of this special interest rate to apply to loans for the construction of new power grids and computing networks.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -0.5% |
| Hang Seng Tech | HSTECH Index | -1.1% |
| Hong Kong Turnover | HKTurn Index | 4% |
| Hong Kong Short Sale Turnover | HKSST Index | 20.3% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 22.5% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 1.9 |
| China (Shanghai) | SHCOMP Index | 0.2% |
| China (Shenzhen) | SZCOMP Index | 0.4% |
| China (STAR Board) | Star50 Index | 0.9% |
| Mainland Turnover | .chturn Index | -17% |
| Japan | NKY Index | -0.6% |
| India | SENSEX Index | -0.3% |
| Indonesia | JCI Index | -0.4% |
| Malaysia | FBMKLCI Index | -1.6% |
| Pakistan | KSE100 Index | -0.5% |
| Philippines | PCOMP Index | -0.9% |
| South Korea | KOSPI Index | -0.3% |
| Taiwan | TWSE Index | -0.8% |
| Thailand | SET Index | -0.5% |
| Singapore | STI Index | -0.2% |
| Australia | AS51 Index | 0.3% |
| Vietnam | VNINDEX Index | -0.2% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 70 | 58 |
| Advancing Stocks | 39 (Hang Seng) | 162 (CSI 300) |
| Declining Stocks | 53 (Hang Seng) | 132 (CSI 300) |
| Outperforming Factors | Growth | Growth |
| Underperforming Factors | Value | Value |
| Top Sectors | Real Estate, Materials, Health Care | Real Estate, Information Technology, Communication Services |
| Bottom Sectors | Consumer Discretionary, Communication Services, Energy | Energy, Utilities, Consumer Discretionary |
| Top Subsectors | Semiconductors, Aerospace, Technology Hardware | Real Estate Services, Cultural Media, Office Supplies |
| Bottom Subsectors | Autos, Software, Industry Conglomerates | Chemical Fiber, Petrochemicals, Marine Industry |
| Southbound Connect Buys | AIA, Xiaomi, Z.AI | N/A |
| Southbound Connect Sells | Alibaba, YOFC, MiniMax | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 165 | -0.59 |
| Communication Services | 11 | -1.35 |
| Consumer Discretionary | 28 | -1.67 |
| Consumer Staples | 13 | -0.05 |
| Energy | 6 | -1.04 |
| Financials | 25 | 0.08 |
| Health Care | 16 | 1.3 |
| Industrials | 22 | -0.45 |
| Information Technology | 12 | -0.19 |
| Materials | 14 | 1.3 |
| Real Estate | 7 | 2.73 |
| Utilities | 11 | -0.36 |
| Mainland China Listed | 386 | 0.39 |
| Communication Services | 8 | 0.69 |
| Consumer Discretionary | 26 | -0.2 |
| Consumer Staples | 19 | -0.08 |
| Energy | 12 | -1.52 |
| Financials | 64 | 0.29 |
| Health Care | 31 | 0.4 |
| Industrials | 58 | 0.15 |
| Information Technology | 95 | 0.89 |
| Materials | 52 | 0.51 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -1.8 |
| Alibaba HK | 9988 HK Equity | -1.4 |
| JD.com HK | 9618 HK Equity | -1.3 |
| NetEase HK | 9999 HK Equity | 1.6 |
| Yum China HK | 9987 HK Equity | -0.9 |
| Baozun HK | 9991 HK Equity | 1 |
| Baidu HK | 9888 HK Equity | -0.8 |
| Autohome HK | 2518 HK Equity | 0 |
| Bilibili HK | 9626 HK Equity | -1.6 |
| Trip.com HK | 9961 HK Equity | -2.2 |
| EDU HK | 9901 HK Equity | -2.9 |
| Xpeng HK | 9868 HK Equity | -4.1 |
| Weibo HK | 9898 HK Equity | -0.8 |
| Li Auto HK | 2015 HK Equity | -2.6 |
| Nio Auto HK | 9866 HK Equity | -5.1 |
| Zhihu HK | 2390 HK Equity | -0.5 |
| KE HK | 2423 HK Equity | 1.2 |
| Tencent Music Entertainment HK | 1698 HK Equity | -2.2 |
| Meituan HK | 3690 HK Equity | -2 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | -1.8 |
| ALIBABA GROUP HOLDING LTD | -1.4 |
| XIAOMI CORP-CLASS B | -2.6 |
| YANGTZE OPTICAL FIBRE AND-H | 7.4 |
| AKESO INC | 15.5 |
| AIA GROUP LTD | -0.2 |
| SEMICONDUCTOR MANUFACTURI-H | 0 |
| CHINA CONSTRUCTION BANK-H | 0.2 |
| KINGBOARD LAMINATES HLDG LTD | 3.5 |
| MEITUAN-CLASS B | -2 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| VISUAL CHINA GROUP CO LTD-A | 1.7 |
| SHANTUI CONSTRUCTION MACHI-A | -1.1 |
| ZHONGJI INNOLIGHT CO LTD-A | -0.2 |
| HENGTONG OPTIC-ELECTRIC CO-A | -5.8 |
| EOPTOLINK TECHNOLOGY INC L-A | -1.7 |
| CONTEMPORARY AMPEREX TECHN-A | -1.8 |
| CXMT CORP-A | 3.3 |
| GIGADEVICE SEMICONDUCTO-CL A | 2.5 |
| SUZHOU TFC OPTICAL COMMUNI-A | 4.6 |
| CAMBRICON TECHNOLOGIES-A | 2.5 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.70 versus 6.71 yesterday
- CNY per EUR 7.61 versus 7.63 yesterday
- Yield on 10-Year Government Bond 1.67% versus 1.68% yesterday
- Yield on 10-Year China Development Bank Bond 1.74% versus 1.76% yesterday
- Copper Price 0.07%
- Steel Price 0.48%
