China A-share chemical pharmaceutical sector dipped in late trading then recovered; Yuheng Pharmaceutical hit its daily limit up, while Dongya Pharmaceutical, Shenqi Pharmaceutical, Keyuan Pharmaceutical, Haixiang Pharmaceutical and Zhongzhe Jinghua also advanced.

Germany and five fiscally hawkish EU members said the European Commission’s seven‑year €2tn budget proposal must be cut by several hundred billion euros to reflect ongoing fiscal consolidation. Chancellor MERZ met in Berlin with leaders of the Netherlands, Denmark, Austria, Finland and Sweden to coordinate positions and urged “balanced reductions” to the Commission’s plan, which still requires member‑state approval. EU leaders are aiming to finalise the 2028–34 budget by year‑end.

Southbound Stock Connect flows were net buy CNY 1.176 bln today. Via Shanghai-Hong Kong Stock Connect, Shenghong Technology and Zhipu were net bought HKD 316 mln and HKD 304 mln; China Life was the largest net sell at HKD 878 mln. Via Shenzhen-Hong Kong Stock Connect, Shenghong Technology and Kangfang Biotech were net bought HKD 138 mln and HKD 92 mln; Tencent Holdings was the top net sell at HKD 235 mln.