US global asset managers, including BlackRock, have expanded stakes in mainland Chinese pharmaceutical contractor WuXi AppTec over the past two months, betting that a surge in weight-loss drug manufacturing orders will lift earnings in the first half of the year.
Global investors were increasingly interested in China’s contract development and manufacturing organisation, and biotechnology sector, said Linda Shu, head of China healthcare research at HSBC.
“WuXi Apptec is heavily owned given its high expectations” for the first half, Shu said.
JPMorgan Chase remained one of its largest shareholders after raising its stake to 11.39 per cent on July 20, up from 10.98 per cent, according to the Hong Kong stock exchange website.
Swiss banking giant UBS Group and BlackRock are also substantial shareholders, which refer to any investor holding an interest of 5 per cent or more in the voting shares of a listed company.
UBS bought 255,500 shares at an average price of HK$121.51, lifting its stake to 8.02 per cent on June 11. BlackRock purchased 1.52 million shares at an average price of HK$153, increasing its stake to 5.21 per cent on May 14.
WuXi AppTec was expected to release its half-year earnings results on August 3, according to the company. Its Hong Kong-traded stock jumped about 37 per cent over the period, bucking the broad decline in the Hang Seng Index.