Chinese Healthcare, Internet Firms Lead Gainers in Bullish Friday

Chinese healthcare players are seeing healthy stock increases.

Belinda Zhou
    Mar 13, 2020 3:00 PM  PT
Chinese Healthcare, Internet Firms Lead Gainers in Bullish Friday
author: Belinda Zhou   

The Federal Reserve accelerated its purchases of Treasury securities on Friday to offer the market liquidity of $37 billion through the day, which partly sent major benchmarks to fly high in the morning. 

A bunch of Chinese biopharma stocks in New York rebounded over 10% while various sectors saw a two-digit loss intraday Friday to mark the erratic week.

Gainers

China Natural Resources Inc. (Nasdaq: CHNR) works on the exploration and mining of metal properties in China and shares in the company soared over 57% to $1.10 per American depositary share.

Shouguang-based Gulf Resources Inc. (Nasdaq: GURE), covering bromine, crude salt, chemical products, and natural gas, saw its stock jump 20%.

Shares in SPI Energy Co. Ltd. (Nasdaq: SPI), a Hong Kong-based solar company, increased over 26%.

Concord Medical Services Holdings Ltd. (NYSE: CCM) gained 25%. The Beijing-based company operates radiotherapy and diagnostic imaging centers in 20 hospitals in 20 cities in China.

Hangzhou-based pharmaceutical retailer China Jo-Jo Drugstores Inc. (Nasdaq: CJJD) rose 11%. The company divides its business into four segments of retail drugstores, online pharmacy, drug wholesale, and herb farming. CJJD also sells via Tmall, JD.com, and Amazon.com together with its 100 pharmacies.

China's healthcare giant Zai Lab Ltd. (Nasdaq: ZLAB) gained more than $6 on Friday, up 15%, to $50.01 per share. 

Hong Kong-based Hutchison China MediTech Limited (Nasdaq: HCM) increased by 10%.

Some of China's fintech stocks also shifted higher on Friday.

Shanghai-based consumer lending marketplace China Rapid Finance Ltd. (NYSE: XRF) gained 17%.

Its peer, Qudian Inc. (NYSE: QD), which offers online small consumer credit products, shot up 12%.

Shares in Shenzhen-based OneConnect Financial Technology Co., Ltd. (NYSE: OCFT) soared 10%. The company operates cloud-platform-based Fintech solutions, and online information and operating support services. OCFT is backed by China's insurance giant Ping An Insurance Group.

NetEase Cloud Music, a freemium music streaming service developed and owned by Chinese gaming giant NetEase Inc. (Nasdaq: NTES), announced Friday that it has signed a digital music distribution agreement with Studio Ghibli. Shares in NETS gained 7%, while shares in Huami Corp. (NYSE: HMI) stock rose 6% on soaring revenues and doubled net income in the fourth quarter. 

Losers

Borqs Technologies Inc. (Nasdaq: BRQS) was the biggest loser on Friday, down 42% to $2.35 per share. China Auto Logistics Inc. (OTCBB: CALI) down 33% to less than one cent.

Shanghai-based online games developer The9 Ltd. (Nasdaq: NCTY) lost 29%. X Financial (NYSE: XYF) declined by 23% on Friday. The stock price of Lianluo Smart Ltd. (Nasdaq: LLIT) dropped 18%.

Sharing Economy International Inc. (OTCBB: SEII) dropped 16% to 36 cents per share. ChinaNet Online Holdings, Inc. (Nasdaq: CNET) lost 15% on Friday. China Pharma Holdings, Inc. (NYSE: CPHI) fell 10%.

Shares in JinkoSolar Holding Co. Ltd. (NYSE: JKS) jumped in early trading Friday but reversed course, down 2% to $17.37 per share. That was after the solar module maker, based in Shanghai, reported better-than-expected revenues but a miss on earnings for the fourth quarter.

Following a bloody Thursday, shares in LAIX Inc. (NYSE: LAIX) dropped even further Friday by 15% after the company posted lower-than-expected financials for the fourth quarter. In a statement today, LAIX said its revenues in the year-end trimester rose 3% year-over-year to $33.2 million. Net loss widened 26% from the same period in 2018 to $29.5 million, or 60 cents per ordinary share.

The stock of Jupai Holdings Ltd. (NYSE: JP) remained flat, at $1.06 per American depositary share, in early trading Friday after the company posted weak revenues and narrowed losses for the full year 2019.

Indices 

Indices in China fluctuated less than the U.S. counterparts this week. 

The Shanghai Composite lost 36 points, or 1.23%, to 2,887.  The Shenzhen Composite declined 1% to 10,831. The Hang Seng Index in Hong Kong dropped by 276 points to 24,032, down 1.14%.

Stock markets in mainland China and Hong Kong fared better than Japanese markets. The Asian country saw a sharp fall in stock prices on Friday, with Nikkei 225 down 6.08%.

In the U.S., the Dow Jones soared nearly 2,000 points, or 9.36%, to 23,186 points. The S&P 500 jumped 9.29%, while the Nasdaq Composite rose 9.33%.

Aside from the stocks, the oil gained slightly, which Crude Oil Futures up 1.40% as of Friday afternoon. Gold, previously a safety asset, lost over 4% in its futures prices by afternoon's trading. Bitcoin is proven to be not a shelter for its 13% decrease.

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