Mainland China funds increase stakes in Hong Kong biotech amid surge of licensing deals

A growing number of mainland Chinese institutional fund managers have built up stakes in Hong Kong-listed Biotechnology stocks over the past month, drawn by attractive valuations amid a surge in cross-border Licensing deals in the sector.China’s largest mutual fund manager, E Fund Management, has taken a 7 per cent stake in gene-editing Biotechnology firm Biocytogen Pharmaceuticals, buying additional 91,500 shares in the Beijing-based firm at an average price of HK$46.90 each on July 2, according to the Hong Kong stock exchange website.Fullgoal Fund Management also increased its stake in Biocytogen from 6.7 per cent to 7 per cent, acquiring shares at an average price of HK$48.2 on July 7. Biocytogen’s stock has surged about 44 per cent over the past month.