Chinese Covid-19 rapid test makers surge amid optimism about US$5.3 billion market
- Nanjing Vazyme Biotech soared by 13.6 per cent on the Star Market in Shanghai on Monday
- RAT use is expected to be expanded nationwide, say Minsheng Securities analysts
Stocks of Chinese companies that produce Covid-19 rapid antigen test (RAT) kits have surged after Beijing approved their products for public use.
Their rise was the brightest spot in the wider market, which slumped on Monday. Nanjing Vazyme Biotech soared by 13.6 per cent on the Star Market in Shanghai to 120.74 yuan (US$18.9) – the company was among the first batch of five companies approved on Saturday by the government to sell their RAT kits to individual consumers.
In Shenzhen, BGI Genomics, whose subsidiary BGI Yinyuan got an approval, jumped by the daily cap of 10 per cent, while Guangzhou Wondfo Biotech advanced 3.7 per cent.
RAT testing is “the best approach to identify those who are Covid-19 positive under the condition of gradually opening up” of China, Minsheng Securities analysts led by Zhou Chaoze said in a report dated Sunday. The approval of RAT kits for public use “is laying the foundation for gradual easing of measures to fight against the pandemic in the future”, they said. “RAT testing is expected to be expanded nationwide.”
Minsheng Securities, along with Pacific Securities, forecast that the size of the domestic RAT market could reach 33.6 billion yuan (US$5.3 billion) monthly.