** Shares of Shanghai Henlius Biotech 2696.HK drop 11.1% to HK$15.20, their lowest since April 24, 2024

** Stock set for the biggest one-day pct drop since May 2023 and on course for a tenth straight session of decline

** Hong Kong shareholders of Shanghai Henlius Biotech on Wednesday rejected Chinese conglomerate Fosun International's 0656.HK buyout offer, which would have valued the drugmaker at HK$13.37 bln ($1.72 bln)

** Fosun unit Shanghai Fosun Pharmaceutical 2196.HK 600196.SS, which already holds a 59.6% stake in Henlius, had offered HK$24.60 per share in June for the remaining stake

** A requisite majority of H-class shareholders did not approve the buyout, the proposed privatisation will not proceed and the listing of the Henlius's H Shares will be maintained, the companies said

** Hong Kong shares of Fosun Pharmaceutical rise 2.8% and Fosun International climbs 2.4%

** Hong Kong's healthcare index .HSCIH gains 1.5% and Hang Seng Index .HSI adds 1.3%

** Shanghai Henlius stock soared 70.5% last year

($1 = 7.7880 Hong Kong dollars)

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))