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Investing.com-- Wuxi and other major Chinese biotechnology stocks rose on Thursday, extending a recent rally on hopes of more local policy support and that the sector will remain insulated from U.S. trade headwinds.
WuXi AppTec (HK:2359) and WuXi Biologics (HK:2269) rose 4% and 3.5%, respectively, in Hong Kong trade, extending gains into at least a fourth consecutive session. Peers CSPC Pharmaceutical (TADAWUL:2070) Group Ltd (HK:1093), Hansoh Pharmaceutical Group Co Ltd (HK:3692), and 3SBio Inc (HK:1530) rose between 0.3% and 4%.
Biotech stocks were a bright spot among Hong Kong stocks, advancing despite broader losses in the region. The Hang Seng index shed 0.5%.
China’s biotech sector has been on a tear in 2025, helped by improving investor interest following a slew of strong earnings, as well as lucrative licensing deals with major overseas players.
Majors such as Wuxi flagged new U.S. and European contracts despite facing increased regulatory scrutiny in both regions. A major U.S. bill aimed at cutting off business with Chinese biotech companies, called the Biosecure Act, also appeared to be delayed in recent months.
China’s biotech sector received a boost in sentiment after a late-May licensing deal between Pfizer (NYSE:PFE) and 3SBio, which could see Pfizer pay as much as $6 billion for an experimental cancer therapy.
The Pfizer deal was seen underscoring strong demand for Chinese firms from global pharmaceutical companies seeking new drug pipelines, which could keep demand for local players intact despite broader headwinds from trade tariffs.
U.S. President Donald Trump has threatened to impose tariffs on pharmaceuticals, but has so far not made good on his threat.
Biotech stocks also benefited from some improving sentiment towards China, after Beijing and Washington said they had agreed to a trade framework that will see lower tariffs between the two countries.