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Mainland Chinese funds buy into Hong Kong biotech after licensing surge

E Fund Management raised its stake in Biocytogen Pharmaceuticals to 7.0% by buying 91,500 shares at an average HK$46.90 each on July 2.

Reported · Written up by our desk · Fund Industry

Mainland China institutional fund managers have increased holdings in Hong Kong-listed biotechnology stocks over the past month, pointing to attractive valuations amid a rise in cross-border licensing deals in the sector, according to SCMP Economy.

China’s largest mutual fund manager, E Fund Management, lifted its stake in gene-editing biotech firm Biocytogen Pharmaceuticals to 7.0% after purchasing an additional 91,500 shares at an average price of HK$46.90 each on July 2, based on Hong Kong exchange data cited by the outlet.

Fullgoal Fund Management also increased its Biocytogen stake from 6.7% to 7.0%, buying shares at an average HK$48.2 on July 7. Biocytogen’s shares have gained about 44.0% over the past month.

HSBC’s China healthcare research head Linda Shu said the sector’s valuation is attractive, and SCMP Economy noted that the Hang Seng Innovative Drug Index is up about 12.6% over the same period. The outlet also highlighted Stock Connect links that allow mainland and offshore investors to trade across the Hong Kong and mainland exchanges.

Latest closeHang Seng 24,340.73 ▲0.5%

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