Shares of Chinese biopharmaceutical company WuXi AppTec surged Wednesday as investors turned to healthcare stocks amid a global tech selloff and were encouraged by fresh policy support from Beijing.
WuXi AppTec's shares in Hong Kong rose as much as 11% before paring some gains to close 8.3% higher, while its Shanghai-listed stock surged as much as 10% before ending the day 8.6% higher.
WuXi Biologics and WuXi XDC rose 8.9% and 4.2%, respectively. Peers BeOne Medicines and Innovent Biologics advanced 2.7% and 1.5%, respectively, in Hong Kong.
Sharp swings in tech stocks this week have prompted some traders to "fly to safety" in healthcare, a heavily sold sector with strong fundamentals, said Nomura China healthcare analyst Jialin Zhang.
Meanwhile, Beijing's measures aimed at encouraging foreign investment in the pharmaceutical sector, announced Tuesday, signal continued commitment from Chinese authorities to opening up the sector to foreign capital, said Citi analysts in a note.
The measures, jointly issued by China's commerce and finance ministries and the National Development and Reform Commission, include broader commercial insurance coverage for innovative drugs and expanded retail sales channels for foreign medicines.
Optimism was further boosted by U.S. pharma giant Eli Lilly's new research and development partnership with Chinese biotech company Abbisko, Nomura's Zhang added. The deal could be worth as much as $1.9 billion.
WuXi-named companies posted the strongest gains in the healthcare sector, partly supported by recent share buyback plans that reflect managements' confidence in the businesses, Citi said.
Sentiment toward Chinese drugmakers has been strong since last year following a flurry of partnerships between Chinese biotech companies and global pharma names.
"China's innovative drug pipeline is advancing at a global leading speed and cost," Citi said, adding that it sees "high management confidence and strong operational momentum across the value chain."
Write to Jason Chau at jason.chau@wsj.com
(END) Dow Jones Newswires
June 24, 2026 05:49 ET (09:49 GMT)
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