Guotai Asset Management sees liquidity boost driving China biotech, innovation drug shares higher
XBI•AI drug discovery remains a catalyst
AI drug discovery remained a near-term catalyst, with Guotai pointing to potential upside for protein CROs despite elevated volatility risks.
Merck and Moderna cancer vaccine data
Merck and Moderna reported positive Phase III data on 2026-08-19 for mRNA cancer vaccine Intismeran Autogene with Keytruda in resected melanoma.
China biotech shares rebound on liquidity support
Guotai Asset Management flagged a sharp rebound in China’s innovative drug equities, led by key onshore, Hong Kong-listed biotech benchmarks.
Overseas liquidity support drove the move, citing a U.S. Treasury plan to at least double long-dated coupon buyback operations to USD 4 billion.
Falling U.S. yields lifted biotech duration, with the SPDR S&P Biotech ETF (XBI) up 5.91% to a record.
