WuXi Biologics (Cayman) (2269) plunged as much as 25 percent before trading in its shares were halted in Hong Kong, after saying it expects conditions to remain "most challenging" through June 2024.

The stock of China's leading drug contract research and manufacturer was down 24 percent to HK$33 when the bourse suspended trading late in the morning.

WuXi Biologics' stock has slid 45 percent this year amid declines in sales and profit growth.

The industry "faces near-term challenges" as growth slows due to the drop-out of Covid-related sales and a slowdown in biotech funding, WuXi Biologics said.

The company - which has supplied ingredients for AstraZeneca's Covid-19 vaccine - expects a "positive turnaround" in the second half of 2024 and steady growth over the next several years.

"WuXi Biologics' clients are mostly small biotech companies that were facing clinical research funding challenges due to the high interest rate environment, which ultimately led to slowdown of WuXi's deal signing in the first half of 2023," said an analyst at Exome Asset Management.

For firms from the same group, WuXi AppTec (2359) recorded an 8.8 percent decline, WuXi XDC Cayman (2268) saw a 10.9 percent drop, and JW (Cayman) Therapeutics (2126) closed with a 4.4 percent decrease.

Among other major Chinese pharmaceutical stocks, Sinopharm Group (1099) and CSPC Pharmaceutical (1093) declined by 1.15 percent and 4.05 percent, respectively.

Hong Kong equities slid further by about 1.1 percent, with the Hang Seng Index dropping 184 points to 16,646 points yesterday.

Meanwhile, the gold price has drawn in buyers above the US$2,100 (HK$16,380) mark, reaching a record high of US$2,148, for economic data that will challenge market expectations for early and aggressive interest rate cuts from major central banks next year.

Furthermore, bitcoin topped US$42,000 as frenzied speculation in cryptocurrencies gathers pace, extending the largest digital token's rally to more than 150 percent this year.

The biggest cryptocurrency rose as much as 6.1 percent to reach US$42,144 yesterday in London.

And Chinese equities saw net outflow from long/short fund managers for a fourth successive month, mainly due to reduction in long bets, Goldman Sachs' prime services team said, without revealing the figure.

WuXi's stock has fallen 45 percent this year. SING TAO

WuXi Biologics plunges 24pc after warning of challenges