Hong Kong's three major stock indices closed in positive territory on April 15. The Hang Seng Index rose 0.29% to finish at 26,069.43 points, while the Hang Seng Tech Index advanced 1.23% and the HSCEI added 0.54%. Technology and internet stocks led the gains, with JD.com climbing over 4%, and Alibaba and Baidu both rising more than 3%. Bilibili and Kuaishou increased by over 2%. Innovative drug stocks showed notable strength, as Rongchang Biotech surged more than 9%. Aviation stocks rebounded, with China Eastern Airlines rising over 3%. However, lithium battery shares underperformed, as Ganfeng Lithium dropped more than 4%.
Innovative drug concept stocks performed strongly, with Rongchang Biotech jumping over 9%. On April 14, the General Office of the State Council issued a document outlining 14 measures to improve drug pricing mechanisms. These include optimizing initial pricing for newly launched drugs such as innovative medicines, leveraging medical insurance payment standards to guide pricing, encouraging reasonable retail pricing by pharmacies, and ensuring supply and price stability for drugs in short supply. Several securities firms noted that the innovative drug sector is currently in a favorable phase characterized by earnings delivery, valuation recovery, and policy catalysts. They believe the implementation of these policies could serve as a significant catalyst for a new uptrend.
Aviation stocks recovered, with China Eastern Airlines gaining over 3%. In a recent interview on April 14, former U.S. President Donald Trump stated that the war with Iran had "ended." He also suggested that talks with Iran could take place in Pakistan within the next two days. Reports indicated that if a second round of face-to-face negotiations occurs, U.S. Vice President Vance is expected to lead the American delegation again. The talks may also include Trump's special envoy and his son-in-law, according to sources familiar with the matter.
These developments suggest a significant reduction in geopolitical risks in the Middle East, leading to a noticeable easing of market risk aversion. WTI crude oil fell as much as 3% during early trading, dropping below $86 per barrel.
Lithium battery stocks weakened, with Ganfeng Lithium declining over 4%. CITIC Futures previously noted that easing tensions in the Middle East have diminished earlier expectations of energy-driven price increases. Market focus has shifted from supply concerns to weaker-than-expected demand. While lithium carbonate fundamentals remain solid, the sector is unlikely to rally independently if the broader non-ferrous metals market remains subdued. Prices are expected to follow base metal trends, with overall weakness likely persisting until mid-April.