Shares of Chinese Covid drugmakers jump amid concerns over new wave of virus

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(Bloomberg) – Growing concerns that China could face a new wave of Covid fueled a surge in shares of the nations’ drugmakers on Monday as the public worried about waning immunity.

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Xinxiang Tuoxin Pharmaceutical Co. jumped 20% in Shenzhen, while Hybio Pharmaceutical Co. jumped 15%. Gains resisted a decline across the market as risk sentiment subsided, with the benchmark CSI 300 tumbling 1.6%.

The rally was fueled by concerns circulating on social media about the risk of further infections, given that the previous wave subsided months ago. While the Chinese Center for Disease Control and Prevention said the Covid positivity rate continued to decline, reaching 1.7% on April 20 from a peak of 29% in December, it also mentioned a new under- variant XBB.1.16.

The word Covid was at one point the most searched topic on Weibo over the weekend, while the topic Covid second wave received more than 95 million views on Monday. Official figures, however, do not yet point to a spike in infections. The April 22 CDC statement showed that the daily infection count and number of visits to fever clinics have remained stable since the peak in December.

Meanwhile, Zhang Wenhong, one of China’s top Covid advisers, told a summit last week that vulnerable groups should be given a reminder and citizens should stock up on medicine in anticipation of the pandemic. arrival of new variants.

Other pharmaceutical companies that produce drugs used in the first wave also won. Shijiazhuang Yiling Pharmaceutical Co. gained 5.5% while China Resources Sanjiu Medical & Pharmaceutical Co. gained 8.7%.

–With the help of Dong Lyu.

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