China's crude oil futures plunge over 7%, A-share chemical and pharmaceutical sectors surge

Shanghai, September 21 — Major A-share indices moved higher during the morning trading session, driven by strong gains in the basic chemicals and pharmaceutical sectors, which saw a wave of daily limit-up moves.

Market Overview

As of the morning close:

• Shanghai Composite Index (1A0001) rose 0.55%
• Shenzhen Component Index (399001) gained 0.57%
• Science and Technology Innovation Composite Index (1B0680) increased 0.40%
• ChiNext Index (399006) climbed 0.93%, returning above the 3,400-point mark

Sector Highlights

Pharmaceutical and Biotech Sector Surges

The pharmaceutical and biotech sector led the rally, with the sector index rising over 3% during the session. Notable movers include:

• Huaren Pharmaceutical (300110) hit the 20% daily limit-up with over 340,000 lots in pending buy orders
• Novogene (688315), Abclonal (688137), Tellgen (300642), and Jet Biofil (688026) all hit the 20% limit-up
• Chengdu Lead (688222), Wanbang Pharmaceutical (301520), Tiannoboc (688806)-U, Kexing Pharmaceutical (688136), Asieris Pharmaceuticals (688176)-U, and Huiyu Pharmaceutical (688553)-W all rose over 10%
• Multiple stocks hit the 10% daily limit, including Haochen Medical (002622), Ruikang Pharmaceutical (002589), Baihua Pharmaceutical (600721), Aoyang Health (002172), Harland Medical (002900), Huasen Pharmaceutical (002907), Shinva Medical (600587), and Harbin Pharmaceutical (600664)

Other Leading Sectors

Real Estate (881153), Beauty and Personal Care (881182), and Building Materials (881115) also posted strong gains.

Basic Chemicals Sector Shines

The Basic Chemicals (850102) sector emerged as a key highlight, driven by falling crude oil futures:

• Jindan Technology (300829), Changhua Chemical (301518), and Hisun Biomaterials (688203) rose over 10%
• Multiple stocks hit the daily limit-up, including Shuangxing New Materials (002585), Hong Sifang (603395), North Chemical (002246), Aijin Precision (603580), Sanxiang Advanced Materials (603663), Jinrui Mining (600714), Aipu Shares (603020), and Huaruan Technology (002453)

Market consensus: The decline in crude oil prices is seen as beneficial for certain chemical sub-sectors along the oil industry chain, as it helps lower production costs.

Crude Oil Futures Plunge

Domestic crude oil futures fell sharply during the morning session, with the main contract at one point dropping over 7%. The contract had previously broken above 800 yuan per barrel but has since fallen back to just above 700 yuan per barrel after a continuous decline.

Hong Kong Market: Inmagene-B Soars Over 40%

Hong Kong stocks performed well overall during the morning session.

Hang Seng Index traded mostly higher. Among index constituents, Sino Biopharmaceutical (HK1177), CSPC Pharmaceutical (HK1093), Innovent Biologics (HK1801), WuXi Biologics (HK2269), Hansoh Pharmaceutical (HK3692), and WuXi AppTec (603259) led gains. Lenovo Group (HK0992), Ali Health (HK0241), Haier Smart Home (HK6690), Midea Group (HK0300), and Li Auto-W (HK2015) were among the laggards.

Inmagene-B (HK7630) surged over 40% during the session.

Catalyst: The company announced on Friday evening that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) has adopted a positive opinion recommending marketing authorization (MA) for Sepalna (senaparib). The drug is intended for maintenance treatment of advanced epithelial ovarian, fallopian tube, and primary peritoneal cancer. Following the CHMP recommendation, senaparib will be submitted to the European Commission (EC) for a final decision. If approved, the drug will be authorized for marketing in all EU member states and European Economic Area countries.