China & HK Equities Lower As US Look To Block Foreign Biotech Firms

Hong Kong and China equities are lower today, with Biotech names the worst-performing sector after the US advanced a bill that would block them from accessing US Federal contracts, while property names are also lower after China Overseas Land's sales declined 69% in February.

• Hong Kong Equities are lower today with the HS Biotech Index down 4.60%, while property names are again under pressure with the Mainland Property Index down 1.10%. Tech names have been performing well in the wider APAC region today however the HSTech Index is now down 0.90%, JD.com is the outlier up 6.00% after strong earnings, while the HSI is down 0.60%. China Mainland equities are faring slightly better however still lower with the CSI300 down 0.50%, now out-performing the CSI1000 down 1.00% and the ChiNext down 1.50%
• China Northbound flows were -1.5b yuan on Wednesday, with the 5-day average to 0.85b, while the 20-day average sits at 2.6b yuan.
• JD.com soared 8% after beating estimates, while also approving a $3B buyback program and hiking it's annual dividend payout by 23%
• The CSRC has pledged to "act decisively" in extreme cases to address market failures and contain turmoil in the stock market at the NPC on Wednesday. They outlined scenarios prompting intervention, including severe deviations from fundamentals, irrational fluctuations, liquidity drying up, and indications of market panic. This move comes as Beijing seeks to restore confidence in the $9 trillion stock market after three years of losses, with the regulator focusing on improving regulations, preventing systemic risks, cracking down on market manipulation, and enhancing fairness in trading.
• The US Senate Homeland Security Committee advances a bill that would block certain foreign biotech companies from accessing US federal contracts. While the US government is also pressing allies including the Netherlands, Germany, South Korea, and Japan to further tighten restrictions on China’s access to semiconductor technology, the move is drawing resistance in some countries.