WuXi Biologics halts trading after US Commerce Department list sparks record 32 per cent slump
- WuXi Biologics says ‘unverified list’ will have no impact on its business or services and plans to take measures to remove its subsidiaries from the list
- The US Commerce Department announced restrictions on transactions with 33 Chinese entities, placing them on the unverified list
Trading in WuXi Biologics was halted on Tuesday following a record drop in its shares, after it was added to the US Commerce Department’s “unverified list” of companies facing export restrictions.
Bruised by renewed US-China tech rivalry, WuXi Biologics sank by as much as 32 per cent, its steepest decline, before settling at HK$62.25 when trading was suspended at 10.51am in Hong Kong for an announcement. The stock lost HK$77 billion (US$9.8 billion) in market value.
Wuxi AppTec, a biotech contracting firm controlled by the founders of WuXi Biologics, slumped fell 11.4 per cent to HK$10.70 on Tuesday, despite not being on the unverified list, wiping about US$4.9 billion of value.
The biotech company said being put on the US Commerce Department’s “unverified list” will have no impact on its business or services to partners.
The Commerce Department on Monday announced restrictions on transactions with 33 Chinese entities, placing them on a so-called “unverified list”. The companies are primarily hi-tech manufacturers and were added to the red-flag list as end-use checks could not be completed satisfactorily for reasons outside the US government’s control.
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