Chinese Vaccine Makers tumbles - $1.9 Billion Market value lost to Stock crash

Chinese Vaccine Makers tumbles - $1.9 Billion Market value lost to Stock crash
  • CanSino falls as much as 28% despite upbeat report on product
  • Market value has fallen $1.9 billion in days after huge gain
  • The Chinese vaccine maker tumbled as much as 28% to HK$160 in Hong Kong as a vertiginous rally gave way.
  • Analysts cited profit-taking as the most likely cause for the drop.

 

The stock had rallied more than 300% this year until Thursday, when cracks first appeared as CanSino slumped 13%. 

The plunge Monday came after a positive report in the Lancet about the company’s experimental Covid-19 vaccine. The treatment was safe and generated an immune response in an early study in humans, the respected medical journal reported.

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Morgan Stanley hiked its price target on the stock to HK$258 after the report, giving the vaccine a 60% chance of approval.

Some $2 billion has been wiped off the company’s shares since the end of trading on Wednesday.

CanSino still has a market capitalization of $5.1 billion, compared with about $1 billion a year ago.