China’s blue-chip CSI300 index rose 0.2% by the lunch break, after tumbling 3% on Wednesday. The Shanghai Composite gained 0.3%, while Hong Kong’s Hang Seng Index climbed 1.5% following a largely flat session a day earlier.
According to Reuters, investors took encouragement from strength in neighbouring markets after a global technology selloff weighed on equities in the previous session. South Korea’s Kospi jumped 7%, while Japan’s stock market gained about 1%.
Share Buybacks Support Sentiment
Market sentiment was also helped by a fresh wave of share buyback announcements and purchases by Chinese companies. Foxconn Industrial Internet Co and CCCC Design & Consulting were among the companies announcing measures aimed at supporting their share prices.
The announcements came as investors looked for signs of corporate support following Wednesday’s sharp market declines.Healthcare Stocks Surge
Healthcare stocks were among the strongest performers in both mainland China and Hong Kong. The rally followed developments in cancer treatment involving Moderna and Merck that triggered a sharp rise in their U.S.-listed shares on Wednesday.Reuters reported that Moderna shares surged as much as 160%, while Merck gained 12%, after the companies announced significant progress in a new area of cancer treatment.
The positive sentiment spilled over into Chinese healthcare stocks. China’s CSI Vaccine and Biotech Index jumped 10%, while Hong Kong’s Hang Seng Innovative Drug Index advanced more than 8%.
Technology Shares Recover
Technology stocks also rebounded after bearing the brunt of Wednesday’s selloff. China’s STAR100 Index rose nearly 3%, recovering part of its 7% decline in the previous session.
In Hong Kong, the Hang Seng AI Index gained about 4%, reflecting renewed buying interest in artificial intelligence and technology-related stocks.
However, the recovery was uneven. Shares of Chinese humanoid robot maker Unitree fell 16% after the stock surged more than fivefold during its blockbuster Shanghai trading debut on Wednesday.
The sharp reversal highlighted the heightened volatility surrounding some of China’s technology and emerging-sector stocks, even as broader markets regained ground.
Overall, Thursday’s gains suggested that investors were attempting to stabilise positions following the previous session’s steep losses, with strength in healthcare, technology and corporate share-buyback activity providing support to Chinese and Hong Kong equities.
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