U.S. Treasury Secretary Bessent said the Treasury and the Federal Reserve will coordinate on any changes to the balance sheet.

Shanghai Composite +0.28% at midday, Shenzhen Composite +0.97%, ChiNext +1.03%. Shanghai- and Shenzhen-listed turnover 1.37 tln yuan, down 246.9 bln vs prior session. About 4,400 stocks advanced. Moderna (MRNA.O) cancer vaccine news lifted the vaccine/biotech and innovative drug complex and CROs, with more than 20 stocks hitting daily limit-ups, including Sanyuan Gene, Shiyao Chuangxin, Watson Biotech, Shuanglu Pharmaceutical and Wantai Biological. Gold-related names rallied, several to limit-up (Nankuang Group, Baoding Technology, Shen Zhonghua A); Xinye Silver-Tin, Chifeng Gold and Shandong Gold also gained. Palm oil (CPO) names recovered, with Changyingtong and Zhongjing Electronics on limit-up. Planting and forestry sectors pulled back; Hualv Biotech fell over 13% intraday while Wanxiang Denong, Agricultural Development Seeds and Beidahuang were among the largest decliners. Fluorochemical, coal and phosphate chemical sectors led losses.

A-share innovative-drug sector opened sharply higher after Moderna jumped 177% overnight when it and Merck said a melanoma vaccine met the primary endpoint in a large trial. Hansen Pharma and Ha Sanlian posted second straight daily limit-ups. Haixin, Zhongguancun, Laimei Pharma, Watson Bio, Jiankai Technology, Shuanglu Pharma, Kangchen Pharma and Yuekang hit daily price limits. Sanyuan Gene rose >20%; Zhifei Bio and Shiyao Innovation gained >15%; Xinkaiyuan, Anke Biotech and Kangtai Biotech rallied >10%.