Stock traders pile into makers of cold medicines, antigen test kits as China’s shift from zero-Covid spurs demand

Name: Excitement and anxiety as China starts to reopen after zero-Covid
Uploaded: 2022-12-09T06:31:28.000Z
Duration: 4 min 41 s
Description: Excitement and anxiety as China starts to reopen after zero-Covid

Stock traders are quickly changing tack with their Covid-19 bets to position for China’s shift away from its harsh pandemic restrictions

Shijiazhuang Yiling Pharmaceutical, whose traditional Chinese cold medicine is officially used to treat Covid-19, has surged in the past month

Reading Time:3 minutes

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Yiling Pharmaceutical’s Lianhua Qingwen capsules have been out of stock in many parts of the country, with prices more than doubling in the southwestern city of Chengdu. Photo: SCMP Handout

Zhang Shidongin Shanghai

Published: 2:31pm, 9 Dec 2022Updated: 3:26pm, 9 Dec 2022

Stock traders are quickly changing tack with their Covid-19 bets to position for China’s shift away from its harsh pandemic restrictions.

They have been chasing the companies that make cold medicines and antigens for coronavirus tests, betting that demand for these products will spike as China allows people to self-isolate at home and drops requirements for nucleic acid testing to encourage use of antigen test kits.

Hong Kong-listed Alibaba Health Information Technology, Ping An Good Doctor and JD Health International are also benefiting, on expectations that online drug sales and medical consultations will increase.

Shijiazhuang Yiling Pharmaceutical, whose flagship traditional Chinese medicine for the common cold is officially used to treat Covid-19, has jumped 45 per cent over the past month in Shenzhen.

Guangzhou Wondfo Biotech, Hangzhou Alltest Biotech and Shenzhen YHLO Biotech, which make antigen test kits, have gained at least 20 per cent in the onshore market in the same span.

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Excitement and anxiety as China starts to reopen after zero-Covid

“The recent easing of Covid-19 restrictions has raised Chinese citizens’ awareness of self-protection against the pandemic, and may significantly boost the demand for Covid-19-related drugs in the short term,” Sunny Chen and Carol Dou, analysts at UOB Kay Hian, wrote in a note dated December 8.

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