The report comes via a Bloomberg piece (gated) , in brief:
- Xinxiang Tuoxin Pharmaceutical Co. jumped as much as 20% in Shenzhen, while Hybio Pharmaceutical Co. rallied 15%. The gains bucked a decline in the broader market as risk sentiment subsided, with the CSI 300 benchmark falling 1.6%.
- The rally was driven by concerns circulating on social media over the risk of new infections, given that the earlier wave subsided months ago. While the Chinese Center for Disease Control and Prevention said Covid positivity rate has continued to trend downward, reaching 1.7% on April 20 from a peak of 29% in December, it also mentioned a new sub-variant XBB.1.16.
From 2020 to 2023 China went through on and off lockdowns. These impacted the economy. Its difficult to see China going back to those days but there is a risk people in the country self-isolate (to greater or lesser extents) given the distrust the population generally has for the Chinese Communist Party authorities.
