Mainland China funds increase stakes in Hong Kong biotech amid surge of licensing deals

AI Summary

Mainland Chinese institutional fund managers have increased stakes in Hong Kong-listed biotechnology companies amid a rise in cross-border licensing deals in the biotech sector. Notably, E Fund Management acquired a 7% stake in Biocytogen Pharmaceuticals as part of these investments.

A growing number of mainland Chinese institutional fund managers have built up stakes in Hong Kong-listed biotechnology stocks over the past month, drawn by attractive valuations amid a surge in cross-border licensing deals in the sector. 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,...