Wuxi, Chinese biotech stocks extend rally on demand, trade optimism

Published 12/06/2025, 05:56
© Reuters.

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. 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.