Chinese language drug large halts buying and selling as US transfer triggers inventory plunge

Wuxi Biologics suspended buying and selling in Hong Kong on Tuesday following a report droop in its share worth, after Washington added the Chinese language pharmaceutical large to a listing that might prohibit its US operations.

The Division of Commerce on Monday mentioned the corporate was amongst 33 Chinese language entities added to its unverified listing, which can pressure it to acquire further licences to do enterprise with American companies.

Wuxi Biologics, which produces vaccines and medicines on contract for pharmaceutical companies, mentioned the transfer would have “no influence” on its enterprise and that it was “in compliance with all US export management laws”.

However its shares plunged as a lot as 32 p.c in Hong Kong on Tuesday earlier than suspending buying and selling down 23 p.c at HK$62.25.

The corporate has expanded aggressively in recent times with a 1.3 million-square-foot manufacturing facility set to open within the western Chinese language metropolis of Chengdu subsequent 12 months, in accordance with its web site.

It signed an settlement with GlaxoSmithKline and Vir Biotechnology to provide Covid-19 antibody remedy Sotrovimab in 2020, and took over a Bayer manufacturing facility in Germany final 12 months to provide Covid-19 vaccines.

The USA has added a lot of Chinese language corporations to official lists in recent times, curbing their skill to do enterprise at a time of heightened tensions between the world’s two greatest economies.

China’s commerce ministry on Tuesday mentioned it “firmly opposed” the newest US transfer, calling the listing a “software of political suppression and financial bullying”.

The addition of Chinese language tech large Huawei to the so-called entity listing — in addition to subsequent strikes towards the telecom large — have barred it from shopping for essential parts and decimated its once-thriving smartphone enterprise.


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