Growing concerns that China may be facing a new Covid wave fueled a surge in shares of the nation’s drugmakers Monday as the public fretted over waning immunity.
(Bloomberg) — Growing concerns that China may be facing a new Covid wave fueled a surge in shares of the nation’s drugmakers Monday as the public fretted over waning immunity.
Xinxiang Tuoxin Pharmaceutical Co. jumped as much as 20% in Shenzhen, while Hybio Pharmaceutical Co. rallied 15%. The gains bucked a decline in the broader market as risk sentiment subsided, with the CSI 300 benchmark falling 1.6%.
The rally was driven by concerns circulating on social media over the risk of new infections, given that the earlier wave subsided months ago. While the Chinese Center for Disease Control and Prevention said Covid positivity rate has continued to trend downward, reaching 1.7% on April 20 from a peak of 29% in December, it also mentioned a new sub-variant XBB.1.16.
The word “Covid” was at one point the most searched topic on Weibo over the weekend, while the topic “second wave of Covid” has received more than 95 million views on Monday. Official figures, however, don’t yet point to a spike in infections. The CDC’s April 22 statement showed the daily infection tally and the number of visits to fever clinics have remained stable since the December peak.
Meanwhile, Zhang Wenhong, one of China’s top Covid advisers, said at a summit last week that vulnerable groups should get a booster shot and citizens should stock up on drugs in preparation for the arrival of new variants.
Other pharmaceutical firms that produce drugs used during the first wave also gained. Shijiazhuang Yiling Pharmaceutical Co. advanced 5.5% while China Resources Sanjiu Medical & Pharmaceutical Co. added 8.7%.
–With assistance from Dong Lyu.
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