[The Epoch Times, September 13, 2022](The Epoch Times reporter Li Xin compiled and reported) The latest U.S. effort to reduce reliance on Chinese products and markets has dealt a heavy blow to Chinese biotech stocks. As investors expect more signs of decoupling between the U.S. and Chinese economies.
America presidentBidenSigned on Monday (September 12)Executive order, to provide more government funding to the U.S. biotech industry to reduce U.S. dependence on foreign companies, especially Chinese companies, in the field. As soon as the move came out, on Tuesday (September 13), two subsidiaries of China’s Wuxi Biologics Co., Ltd. (WuXi Biologics), a leader in the Chinese stock market, registered in the Cayman Islands “WuXi Biologics (Cayman)” ) Inc.” and Shanghai WuXi AppTec Co. fell at least 16 percent in Hong Kong.
BidenofExecutive orderThe latest move comes after the U.S. restricted exports of advanced chips to China, underscoring heightened strategic competition between the two countries and adding to selling pressure on Chinese stocks.
“I don’t think the market has fully priced in the risk of a U.S.-China conflict. That’s what healthcare companies are doing todayplummets reason. Paul Pong, managing director of Pegasus Fund Managers Ltd. in Hong Kong, told Bloomberg, “China and the U.S. are still competing fiercely in aerospace, artificial intelligence manufacturing and other fields. Sanctions are not surprising. “
On Tuesday, Pharmaron Beijing Co., Asymchem Laboratories Tianjin Co. and WuXi AppTec were the worst performers in the CSI 300 Index. Shares fell by at least 10%. The benchmark closed up 0.4%. In Hong Kong, shares of WuXi Biologics fell nearly 20%, the biggest drag on the Hang Seng Index.
Any additional sanctions or export restrictions from the U.S., China’s largest trading partner, will hit Chinese stocks, especially as China’s economic outlook is under pressure from a “zero-sweep” policy from the coronavirus (COVID-19).
Responsible editor: Li Huanyu#