China’s largest mutual fund manager, E Fund Management, has taken a 7 per cent stake in gene-editing biotechnology firm Biocytogen Pharmaceuticals, buying additional 91,500 shares in the Beijing-based firm at an average price of HK$46.90 each on July 2, according to the Hong Kong stock exchange website.
Fullgoal Fund Management also increased its stake in Biocytogen from 6.7 per cent to 7 per cent, acquiring shares at an average price of HK$48.2 on July 7. Biocytogen’s stock has surged about 44 per cent over the past month.
“We believe the sector’s valuation is attractive,” wrote Linda Shu, head of China healthcare research at HSBC, in a note on July 10.
The Hang Seng Innovative Drug Index, which tracks some of China’s most innovative pharmaceutical and biotechnology companies, including Innovent Biologics and Akeso, has risen by about 12.62 per cent over the past month.
The mainland-Hong Kong Stock Connect allows onshore investors to buy and sell shares listed on the city’s bourse and allows offshore investors to trade on mainland exchanges.
