Hong Kong stocks slip from 4-year high amid fears of US sanctions on drug makers

The Trump administration has been discussing severe restrictions on medicines from China, according to the New York Times

The Hang Seng Index fell 0.3 per cent to 26,133.24 as of 11.30am local time. The Hang Seng Tech Index added 0.1 per cent.

A rebound in mainland stocks helped to cushion the sell-off in the city. The CSI 300 Index climbed 1.8 per cent and the Shanghai Composite Index added 1.1 per cent.

Sino Biopharmaceutical slumped 5.7 per cent to HK$8.29 and CSPC Pharmaceutical Group plunged 8 per cent to HK$10.07. WuXi Biologics sank 4.6 per cent to HK$35.84 and WuXi AppTec shed 4 per cent to HK$110.50. Alibaba Group Holding advanced 0.6 per cent to HK$143.60 after the e-commerce giant said it planned to raise US$3.17 billion in what would be the world’s biggest offering of convertible notes this year.

The Trump administration has been discussing severe restrictions on medicines from China, the New York Times reported on Wednesday, citing a draft executive order that threatened to cut off the pipeline of Chinese-invented experimental treatments.