- Following a sharp decline on Wednesday amid concerns over an impending U.S. crackdown, Chinese biotech companies listed in the U.S. have rebounded sharply after the Department of Commerce published a list of sanctioned entities clarifying the earlier reports.
The list released by the Department of Commerce on Thursday did not include links to any of those firms and it shows that “China biotech fears were overblown,” wrote Jefferies analyst Michael Yee in a note to clients.
- Notable gainers include I-Mab (IMAB +7.5%), BeiGene (BGNE +8.5%), Zai Lab (ZLAB +18.5%), HUTCHMED (HCM +7.0%) and Legend Biotech (LEGN +3.9%)..
- Despite the steep selloff, JPMorgan moved to defend Zai Lab (NASDAQ:ZLAB) yesterday, citing management comments to argue that biotech was unlikely to face hardships due to a recent bill passed by the U.S. House of Representatives banning imports from China’s Xinjiang region.