Wuxi AppTec and Wuxi Biologics Shares Tumble Following US House Bill Targeting Chinese Biotech Firms

Stocks for Wuxi AppTec and Wuxi Biologics took a hit following the approval of a US legislation aimed at limiting dealings with Chinese biotech corporations.

On Tuesday, Wuxi AppTech's shares dropped by 10% to HK$32.20, while its associate company, Wuxi Biologics, saw a decline of 3.9% to HK$10.90. In contrast, the Hang Seng Index increased by 0.2%. Wuxi AppTec's shares that are traded in Shanghai experienced a decrease of 5.4%, resulting in a value of 37.29 yuan.

On Monday, the House approved the bill with a vote of 306 to 81. For the bill to progress, it requires Senate confirmation before President Joe Biden can sign it into law. The proposed legislation will prohibit federal contracts with the identified companies and their U.S. branches if it gets enacted. Initially, the legislation will focus on five Chinese companies: Wuxi AppTec, Wuxi Biologics, BGI Group, its affiliated division, and a U.S. subsidiary.

Wuxi AppTec and Wuxi Biologics have refuted claims that they represent a security threat to the United States. They further clarified that their operations are focused on human genomics and they do not gather any related data. This information was shared in individual statements to the Hong Kong exchange on Tuesday.