Chinese Pharma Stocks Fall on Potential U.S. Restrictions on Drugs

By Jiahui Huang

Shares of Chinese biotech companies fell sharply Thursday after a media report said the Trump administration may impose restrictions on medicines from China.

Biotech stocks led losses on the Hang Seng Index by midday. CSPC Pharmaceutical dropped 8.0%, Hansoh Pharmaceutical fell 9.2% and Sino Biopharmaceutical lost 5.5%. WuXi AppTec declined 3.8%, while Wuxi Biologics was down 4.15%.

The selloff followed a New York Times article saying the Trump administration is considering tighter restrictions on the growing flow of experimental drugs from China.

The White House didn't immediately respond to The Wall Street Journal's request for comment.

The proposed measures could include heavier scrutiny of deals in which U.S. pharmaceutical companies purchase rights to experimental drugs from Chinese firms, as well as and discouraging reliance on clinical-trial data generated in China.

The proposal underscores the rapid progress of China's drug industry, which has narrowed the gap with U.S. peers, Nomura analysts said.

While investor sentiment toward the sector has been boosted by advances in innovative drugs and the out-licensing trend, the proposed rules add another layer of risk at a time when the U.S. has already imposed restrictions on China's semiconductor sector.

"After all, increased scrutiny of deals with China drugmakers, and the U.S. firms not relying on China's clinical-trial data are not deal-breakers," the analysts wrote.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

September 11, 2025 00:40 ET (04:40 GMT)