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US Fed Rate Hike Pulls Chinese Shares Down; ShenGu Soars 374% on Shanghai Debut

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Chinese stocks fell Thursday, tracking Wall Street losses after the U.S. Federal Reserve raised rates under new Chair Kevin Warsh.

The Shanghai Composite Index, the main gauge of Chinese stocks, closed 0.4% lower at 3,875.60. The Shenzhen Component Index dipped 0.3% to 13,409.91.

The Fed lifted rates by 25 basis points-the first hike since 2023-and signaled more increases to curb oil-driven inflation, sparking a U.S. sell-off that dented risk appetite in China.

In company news, ShenGu Group (SHA:601091) shares closed at 20.80 yuan per share on their first day of trading on Shanghai's Main Board. This marked a 374% jump from the equipment manufacturer's initial public offering price of 4.39 yuan per share.

Elsewhere, Beijing Sun-Novo Pharmaceutical Research (SHA:688621) received approval from China's National Medical Products Administration to begin clinical trials for its BTP0427 compound sustained-release capsules.

What else is happening in Asia?

Asia

Market Chatter: China Airlines Plans Codeshare Partnership with Britain's Virgin Atlantic

China Airlines (TPE:2610) plans to launch codeshare partnership with Britain's Virgin Atlantic Airways, according to a Focus Taiwan report on Wednesday, quoting the airlines' president Kevin Chen.Initially, China Airlines, and Virgin Atlantic will share flight codes on each other's services and will subsequently tap into complementary route networks to faciliate better flight services between Taiwan and the UK, Chen said.China Airlines' sahares were up over 1% in Thursday's trade.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

TPE:2610
Asia

China Petrochemical Unit Wins Court Ruling Revoking Land Seizure

China Petrochemical Development (TPE:1314) unit Core Pacific Development won a ruling from the Taiwan High Court, that revoked a criminal seizure order on a plot of land in Taipei, Taiwan.The land had been subject to four seizure rulings issued by the Taipei District Court at the request of the Taipei District Prosecutors Office.The company said the matter has no financial or business impact.

TPE:1314
Asia

Lotus Pharmaceutical's Unit to Reduce Capital by $70 Million

Lotus Pharmaceutical's (TPE:1795) subsidiary, Lotus International, will reduce its capital by $70 million, according to a Wednesday filing with the Taiwan Exchange.The reduction involves the cancellation of 70 million shares as part of the group's capital utilization plan.Following the reduction, Lotus International's share capital will stand at $16.1 million.

TPE:1795