Some Chinese Medical Stocks Rise; Gold Hits 7-Year Peak
Investors looked to safer assets on the coronavirus concerns, while stock markets in China enjoyed a bullish week.
China's medical sector saw gains in New York trading Friday while some Chinese education stocks slipped. Overall, U.S. stocks dropped across the board on fears of the coronavirus spread, while stocks in mainland China continued to rally.
Investors in the U.S. turned to the Chinese healthcare sector, sending four medical stocks up Friday.
The stock in China Jo-Jo Drugstores Inc. (Nasdaq: CJJD) soared nearly 13%, closing at $1.79 per American depositary share. The Hangzhou-based pharmaceutical retailer said it had assembled more than 200,000 protective masks in efforts to help combat the epidemic earlier this month.
Shares in China Pharma Holding Inc. (NYSE American: CPHI) soared about 10% to $0.47 per share. Its stock price has nearly doubled since the start of the year.
Another gainer was China SXT Pharmaceuticals Inc. (Nasdaq: SXTC), shares in which jumped 9% to $0.94 apiece. The Taizhou-based pharmaceutical company offers traditional Chinese medicine piece tablets.
BOQI International Medical Inc. (Nasdaq: BIMI)'s stock soared 6% to $3.60 per share Friday.
Besides the healthcare sector, China's traditional and technology-driven firms in the real estate sector gained on Friday.
Shares in Fang Holdings Ltd. (NYSE: SFUN) jumped 16% to $2.56 per share.
The stock of another real estate firm, Xinyuan Real Estate Co. Ltd. (NYSE: XIN), got a 7% boost Friday after the company announced that U.S. credit rating agency Fitch Ratings had re-classified it as a low refinancing risk.
Stocks of supercomputing company Canaan Inc. (Nasdaq: CAN) skyrocketed 10% on Friday, closing at $5.86 per share. The company specializes in blockchain servers, including bitcoin mining machines, which benefitted from the soaring bitcoin price. Data from Morningstar and Coinbase showed BTC/USD was trading at $9,687 Friday.
China's medical gadgets company Lianluo Smart Ltd. (Nasdaq: LLIT) announced $2.5 million in direct offerings and warrants, sending its stock down 23% Friday.
The stock in Cheetah Mobile Inc. (NYSE: CMCM) hit a historic low on Friday after the company confirmed that it has been removed from the Google Play Store. Cheetah's stock plummeted nearly 17% to $2.99 per share today.
Some of the Chinese education stocks also declined, following this week's earlier gains.
The stock in OneSmart International Education Group Ltd. (NYSE: ONE) tumbled 7% Friday to $4.94 per share. The company has lost 26% of its market value since the beginning of 2020. This Wednesday, the company announced losses that have more than doubled in the first fiscal quarter.
Shares in China Distance Education Holdings Ltd. (NYSE: DL) dropped 6%, while Hailiang Education Group Inc. (Nasdaq: HLG) ended down 7%.
Hollysys Automation Technologies Ltd. (Nasdaq: HOLI) saw its stock decline 6%. Earlier this week, the company reported a two-digit growth in revenues and a 23% decreased income for the second quarter.
China's mainland benchmark stock indices, the Shanghai Composite and the Shenzhen Composite, rose 0.31% and 1.05%, closing on Friday at 3,029.67 and 11,629.70, respectively.
The Hang Seng Index in Hong Kong lost 300 points to 27,309, down 1.09% Friday.
The Nasdaq Composite ended down 1.79%, the Dow Jones lost 0.78%, and the S&P 500 shifted down 1.05%.
Amid an unstable market environment, investors have indicated a growing interest in safer assets like government bonds and gold. Gold hit to a seven-year high today, with Gold Continuous Contract (U.S.: Nymex) hitting $1,646.40, up 1.59%.