MARKET REPORT: AstraZeneca shares sink on Chinese investigation shock

AstraZeneca shares fell after it revealed that the president of its business in China is under investigation by regulators in the People’s Republic.

A spokesman for the FTSE 100 drugmaker said Leon Wang, who is also executive vice-president of its international division, is cooperating with the investigation by Chinese authorities.

If requested, AstraZeneca added, it will cooperate fully with the investigation. The firm said operations in the country are under the leadership of the CEO of AstraZeneca China.

Last month, China detained five of AstraZeneca’s current and former employees, reportedly for questioning over possible violations of data privacy laws and importing unlicensed drugs.

The pharmaceutical giant has been investing heavily in the country, announcing plans to build a £350m factory last year and recently signing a series of licensing deals with Chinese companies.

AstraZeneca shares fell 2.8 per cent, or 328 pence, to 11,206 pence.

Weakness in the pharmaceutical sector weighed on the FTSE 100 index, which closed down 0.7 per cent, or 59.98 points, at 8,159.63, while the FTSE 250 added 0.4 per cent, or 71.33 points, to 20,694.12 as investors digested the budget.

Among those rising was Entain, owner of Ladbrokes and Coral (up 8.6 per cent, or 61.6p, to 774.8p), amid relief that Chancellor Rachel Reeves did not launch the tax raid against gambling companies that was rumored before the Budget.

In the other direction, defense company BAE Systems lost 0.8 per cent, or 10.5 pence, to 1,269 pence, reacting to news of a major fire at its Barrow-in-Furness shipyard in Cumbria, where British nuclear submarines are built.

Miner Anglo American lost 3.9 percent, or 97.5 pence, to 2,385.5 pence, amid reports that former challenger BHP (which fell 1.3 percent, or 29 pence, to 2,181 pence) has moved on and intends to focus on other growth opportunities.

But mining peer Glencore added 1.2 per cent, or 5p, to 409.6p after a mixed production performance through the first three quarters of the year, with copper, cobalt, zinc and nickel output generally lower year on year. year, while steelmaking coal registered a significant increase.

Asia-focused lender Standard Chartered was a top winner after the results, gaining 4.1 per cent, or 36.2 pence, to 912.6 pence, as it raised its revenue guidance for the current financial year thanks to record quarterly growth in its Wealth Solutions and Global Markets Segments.

StanChart also said it expects to return at least £6.1 billion to shareholders between 2024 and 2026, an improvement on previous guidance of at least £3.85 billion.

Payments processor CAB Payments lost 5.2 per cent, or 6.2 pence, to 114.2 pence, as a weak third quarter trading update offset news that it is still in talks with the US payments company Stone X about a possible acquisition.

On AIM, financial services firm Equals Group found support in takeover hopes, rising 10.7 per cent, or 12p, to 124p after revealing it received an improved proposal from an interested consortium.