On the market, individual stocks experienced more declines than gains, with over 4200 stocks falling across the Shanghai, Shenzhen, and Beijing markets. In terms of sectors, automotive and innovative drug sectors led the gains, while gold stocks became active in the afternoon, and ports and power sectors experienced significant losses. The innovative drug sector saw another significant increase, with companies like HaiChen Pharmaceutical and ZhongSheng Pharmaceutical hitting their upper limits, and XinLiTai and KeLun Pharmaceutical reaching historical highs.
In the automotive sector, SaiLiSi and XueLong Group reached their daily limit up. On Friday, May 23rd, A-shares fell across the board in the afternoon, with the three major stock indices continuing to decline, with the ChiNext index falling over 1%. The pharmaceutical and precious metals sectors were active, while ports led the losses. Hong Kong stocks rose and then fell, with Hengrui Medicine’s Hong Kong debut increasing by 30%. In the bond market, government bond futures generally closed higher. A-shares: As of the closing, the Shanghai Composite Index fell by 0.94%, the Shenzhen Component Index fell by 1.85%, and the ChiNext Index fell by 1.18%. On the market, individual stocks experienced more declines than gains, with over 4200 stocks falling across the Shanghai, Shenzhen, and Beijing markets. In terms of sectors, automotive and innovative drug sectors led the gains, while gold stocks became active in the afternoon, and ports and power sectors experienced significant losses. The innovative drug sector saw another significant increase, with companies like HaiChen Pharmaceutical and ZhongSheng Pharmaceutical hitting their upper limits, and XinLiTai and KeLun Pharmaceutical reaching historical highs. In the automotive sector, SaiLiSi and XueLong Group reached their daily limit up. Additionally, gold stocks were lifted in the afternoon, with Western Gold and XiaoCheng Technology both increasing by more than 4%. Meanwhile, the shipping and port sector continued its downward trend, with Nanjing Port and Lianyungang Port hitting their lower limits; power stocks adjusted collectively, with Xichang Power and Leshan Power hitting their lower limits. News: Regarding the collective dive of A-shares in the afternoon, according to the news from Securities China, looking at the market trend, today’s heavyweight stocks were the main force behind the decline of the market, including Changjiang Power, CITIC Securities, and Kweichow Moutai. The collective decline of port stocks indicates a large-scale withdrawal of speculative funds. Amid weakening risk preferences, gold stocks were quickly lifted, government bonds rose collectively, and protective funds also entered the market in the afternoon, with four Shanghai-Shenzhen 300 ETFs significantly increasing in volume, among which, Huatai-PineBridge Shanghai-Shenzhen 300 ETF’s transaction volume was nearly 3. 4 billion yuan, ranking first among broad-based ETFs; the transaction volumes of E Fund Shanghai-Shenzhen 300 ETF and Harvest Shanghai-Shenzhen 300 ETF also increased significantly. Structurally, the market has a very obvious structural characteristic recently, that is, micro-cap stocks have seen significant gains, but have reached a point where they cannot rise further, and dividend stocks are also at high levels, at which point the market lacks themes and is in a dilemma; looking at the performance of index futures and spot, there is a large discount, and the index is in a state that is easy to fall and difficult to rise. Hong Kong stocks: As of the closing, the Hang Seng Index increased by 0.24%, turning green at one point in the afternoon, and the Hang Seng Tech Index slightly fell by 0.09%, having risen by more than 1% at one point during the session.Pharmaceutical stocks are on the rise, with Hengrui Medicine closing up more than 25% on its first day of listing, and Stone Pharmaceutical Group increasing by over 2%. BYD’s shares also rose nearly 2%, as the company’s electric vehicle sales in Europe surpassed Tesla for the first time. In the bond market, government bond futures reversed their downward trend in the afternoon, with all contracts closing higher; the 30-year main contract rose by 0.04%, the 10-year main contract by 0.04%, the 5-year main contract by 0.07%, and the 2-year main contract by 0.04%.
Commodities: Domestic commodity futures closed with more declines than gains. Coking coal fell by over 4%, manganese silicon and BR rubber by over 3%, liquefied gas and caustic soda by more than 2%, plastics and PVC by over 1%, while pig iron and hot-rolled steel experienced minor declines. Container shipping to Europe increased by over 2%, polycrystalline silicon and pulp by over 1%, with eggs and soybeans also showing minor increases. The pharmaceutical sector defied the trend and showed strength today, with both A-shares and H-shares in the pharmaceutical sector being active. Among them, A-shares in the CRO, weight loss drugs, and chemical pharmaceuticals sectors led the gains, with Sunshine Noah up by more than 12%, and Zhongxing Pharmaceutical hitting the daily limit. Companies like Rui Zhi Pharmaceutical, Hongbo Pharmaceutical, and Huahai Pharmaceutical also saw significant increases. According to news from Securities China, several innovative drug companies, including BeiGene, Kolon Bio, and Ascentage Pharma, announced they would showcase their innovative drug research results at the 2025 American Society of Clinical Oncology (ASCO) Annual Meeting, held from May 30 to June 3. The ASCO Annual Meeting is the world’s largest, most academically rigorous, and most authoritative clinical oncology conference, considered an industry benchmark and attracting global attention from the pharmaceutical industry and investors. On the policy front, the National Healthcare Security Administration held a symposium at the beginning of the year to support the development of innovative drug companies, expressing its commitment to improving the ‘1+3+N’ multi-level security system and expanding payment channels for innovative drugs. Beijing and Shenzhen have introduced measures to support the development of the innovative drug industry chain. Regarding overseas expansion, several innovative drug companies have reached significant deals with multinational pharmaceutical companies, including Hengrui Medicine, Federal Pharmaceutical, and Harbour Biopharma. AVIC Securities believes that the domestic innovative drug sector demonstrates significant investment value. Against the backdrop of the continuous advancement of innovative drug companies going global, the domestic innovative drug industry is undergoing profound changes, with companies continuously enhancing their core advantages and competitiveness, gradually transforming from innovators to significant forces in international competition, and moving from the domestic market to the international stage. Xingye Securities also believes that the prosperity of innovative drugs is sustainable, and the trend of ‘innovation + internationalization’ in the innovative drug industry remains unchanged, always being the core direction of the pharmaceutical sector, with policy support, continuous strengthening of global competitiveness, and the realization of commercial profits. Attention can also be paid to the innovative drug industry chain, which is beginning to improve fundamentally, with overseas business orders and performance starting to recover, and domestic business possessing a logic of independent control.Additionally, Hengrui Medicine’s impressive performance on its first day of listing in Hong Kong has also boosted market confidence. In the early trading session today, Hengrui Medicine’s H-shares once surged by more than 37%, and by the close of the market, the increase exceeded 25%. On the evening of May 21st, Hengrui Medicine announced that the final price for the H-share issuance has been set at HKD 44.
05 per share, which is the upper limit of the expected issuance price. The company plans to globally offer approximately 225 million shares, with 5.5% allocated to the public offering in Hong Kong and 94.5% to international offerings. According to the prospectus, Hengrui Medicine will receive net proceeds of approximately HKD 9.89 billion from the fundraising, which also becomes the highest fundraising amount for a pharmaceutical company IPO in the Hong Kong stock market in the past five years. As previously mentioned by Baidu, this listing in Hong Kong is extremely important for Hengrui Medicine and is a key step in its overseas strategy. Automotive stocks were active today in the A-share market, with Seres and XueLong Group hitting the daily limit. BAIC BluePark, JAC Motors, and BYD followed suit. BYD’s stock price increased by more than 4% during the trading session, setting a new historical high. BYD’s H-shares closed up by nearly 2%, once surging by more than 4.7%. On May 22nd, according to preliminary estimates by the China Automobile Circulation Association’s Passenger Car Market Information Joint Conference, the retail market size for narrow passenger cars in May this year is approximately 1. 85 million units, with a year-on-year increase of 8.5% and a month-on-month increase of 5.4%. Among them, the retail of new energy passenger cars is about 980,000 units, with a penetration rate of about 52.9%. GF Securities believes that as the leader in new energy vehicles, BYD has a solid domestic market presence, a clear competitive advantage under cost advantages, and economies of scale drive the release of depreciation and amortization profits, indicating that BYD has entered a mid-term stage of increasing volume and prices. Risk Warning and Disclaimer: The market carries risks, and investment should be approached with caution. This article does not constitute personal investment advice and has not taken into account the specific investment objectives, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article match their particular circumstances. Responsibility for investment based on this article is assumed by the investor.