China Biotech Stocks Bounce Back as U.S. Sanction Fears Ease

Technicians work inside a laboratory at a Cyagen Biosciences facility in Taicang, Jiangsu province. Photo: Bloomberg

(Bloomberg) — Shares of some of China’s largest pharmaceutical companies rebounded Friday after the U.S. released a list of sanctioned entities without links to those firms, easing investor concerns of possible sanctions by Washington.

Wuxi Biologics Cayman Inc. rallied for a second day, advancing as much as 7.8%, before paring gains to about 2%. Its parent, WuXi AppTec Co., jumped as much as 11% in Hong Kong. Other biotech names, including Zai Lab Ltd. and Genscript Biotech Corp., also surged.