By Jiaxing Li
May 23, 2023 Source: SCMP
Photo / Image Source: Unsplash,
A gauge tracking 55 Covid-19-treatment related stocks listed in China rose 2.8 per cent, the most since mid-December, according to Eastmoney
Hybio Pharmaceutical, Guangdong Zhongsheng Pharmaceutical and Shandong Xinhua Pharmaceutical jumped by the maximum daily limit on the mainland
Chinese pharmaceutical stocks that slumped after Beijing lifted its stringent zero-Covid policy are gaining traction again, as health authorities said new vaccines for coronavirus variants are in the pipeline to tackle future outbreaks.
A gauge tracking 55 Covid-19-treatment related stocks listed on the mainland rallied 2.8 per cent on Tuesday, the most since mid-December when Covid cases surged after the nation abandoned the anti-pandemic policies and reopened the economy, according to data provider Eastmoney.
Shenzhen-listed Hybio Pharmaceutical surged by the 20 per cent daily limit to 12.88 yuan, its best showing since April last year, while peers Guangdong Zhongsheng Pharmaceutical and Shandong Xinhua Pharmaceutical gained by the maximum 10 per cent limit permitted in Shanghai. In Hong Kong, Hansoh Pharmaceutical jumped 4.7 per cent to HK$13.76, while
Wuxi Biologics rose 0.7 per cent to HK$44.85.
The gains come after Zhong Nanshan, one of the nation’s top respiratory disease experts, said on Monday that the vaccines targeting Omicron subvariant XBB had received preliminary approval and were expected to be available soon.
Zhong Nanshan, one of China’s top respiratory disease experts, said vaccines targeting Omicron subvariant XBB were expected to be available soon. Photo: Dickson Lee
Health authorities in China are bracing for another wave of Covid-19 cases, which is expected to reach 40 million cases per week by the end of this month and climb to 65 million cases per week in late June, he said.
A total of 3.49 billion doses of Covid-19 vaccines had been administered in China as of February 23, according to official government data. Of these, around 1.31 billion people had received one dose and 1.27 billion people two doses, accounting for 92.95 per cent and 90.58 per cent of the total population, respectively.
“Covid vaccines still play an important role in preventing severe illness and death,” Zhongtai Securities analyst Zhu Jiaqi said in a note. Getting vaccinated or receiving boosters regularly will be necessary in the future, he said, adding that the vaccination rates will continue to rise.
The World Health Organization last week said protection against symptomatic illness has dropped off with Omicron and suggested that updates to the vaccine’s antigen composition would enhance vaccine-induced immune responses to circulating strains.
Chinese drug makers have been struggling this year after China lifted its stringent Covid restrictions. CanSino Biologics’ Hong Kong-listed shares have plummeted 50 per cent this year, while Shanghai Fosun Pharmaceutical and Chongqing Zhifei Biological Products have slumped by 8 to 15 per cent during the same period on the mainland.
“The valuations of many high-quality pharmaceutical companies are at historically low levels,” Deng Zhouyu, an analyst at Shanghai Securities, said in a note.
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