Sell the Rumor Fails in China Biotech as It Roars Back

Technicians work inside a laboratory at a Cyagen Biosciences Inc. facility in Taicang, East China’s Jiangsu province, in March 2019. Photo: Bloomberg

(Bloomberg) — Some of China’s biggest drugmakers saw at least $22 billion of market value vanish after a day of wild speculation over possible inclusion in President Joe Biden’s blacklist.

On Wednesday, as reports circulated about a new cohort of Chinese companies set to be hit with U.S. sanctions, traders feared that biotech firms could be next. Within hours, Wuxi Biologics Cayman Inc.’s stock slumped by a record 25% in Hong Kong, erasing more than $10 billion of market value. Its sister company, WuXi AppTec Co., lost $7 billion.

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