By Yifan Wang
Shares of Wuxi Biologics (Cayman) Inc. jumped in early Hong Kong trade, after the Chinese biotech company unveiled plans to buy back its shares.
The stock at one point was up as much as 6.1% and was last 4.6% higher at HK$48.55.
The upturn came after Wuxi Biologics on Monday said it will buy back shares for up to $300 million in the open market. "The Board considers that the current trading price of the shares does not reflect their intrinsic value," the company said, adding the repurchase plan is a reflection of its "confidence in its strong growth prospects."
Monday's share gains were a respite for Wuxi Biologics' shares, which suffered a three-day losing streak last week and lost over 30% so far this month. The company, which provides research and manufacturing services to many global pharmaceutical companies, has been hurt by rising global interest rates and signs of increased U.S.-China tensions in the biotech sector.
Earlier this month, U.S. President Biden signed an executive order to boost the U.S. domestic biotech manufacturing and avoid risks posed by foreign adversaries, raising investors' worries over Chinese biotech companies' geopolitical risk and sending Wuxi Biologics shares tumbling by nearly 20% in a day.
Write to Yifan Wang at firstname.lastname@example.org
(END) Dow Jones Newswires