China stocks the new trend? Loncar launches index
In a move that highlights the increasing fixation on opportunities in China, a new stock market index launched this morning to track the performance of companies leading China’s biotech rise. This new index will go by the symbol $LCHINA, and it includes stocks on both the Hong Kong Exchange and the Nasdaq.
Founded by Brad Loncar, an independent biotech investor, through his company Loncar Investments, the index is the second formed by Loncar that follows major trends in biotech. His first index, which debuted in 2015, is a collection of immunotherapy stocks under the index $LCINDX.
Loncar says this new index is in response to massive growth in China’s global biotech presence, driven in part by recent reforms in China’s regulatory body and the rule change allowing biotechs to more easily go public on Hong Kong’s stock exchange.
“China’s biopharma industry is on the cusp of a true revolution that has global implications,” Loncar said in a statement. “Until today, no good stock market index existed as a benchmark for following this important trend.”
LCHINA has 32 holdings, including Shanghai Fosun Pharmaceutical Group, BeiGene, Genscript Biotech, Zai Lab, and Hutchison China MediTech.
Image: Hong Kong’s Victoria Harbor. SHUTTERSTOCK