Overview
- Healthcare names led losses after The New York Times reported a draft U.S. executive order that contemplates severe restrictions on medicines from China, pressuring Sino Biopharmaceutical, CSPC Pharmaceutical, WuXi Biologics and WuXi AppTec.
- Alibaba shares fell after the company said it would raise about US$3.17 billion via convertible notes, flagged as the year’s largest such offering, with dilution concerns weighing on sentiment.
- The Hang Seng Index was down about 1% in early trading on Sept. 11, while the Hang Seng Tech Index slipped 1.1%, though both remained above key levels reached during the recent upswing.
- The pullback followed a rally to near four-year highs driven by expectations of a Federal Reserve rate cut, with CME data showing roughly an 89% probability of a 25-basis-point move.
- China’s August CPI fell 0.4% year on year, reinforcing prospects for domestic easing and underpinning earlier gains alongside strong Southbound Stock Connect flows, as Citi lifted its year-end Hang Seng target to 26,800.