China, Pharma

Eyes on China stocks: Loncar loads new ETF with his picks for most promising biotechs on HKEX and Nasdaq

An investor group based in the Midwest is tapping the booming biotech scene in China to launch a new investment vehicle for traders interested in promising Chinese ventures.

Loncar Investments, founded by independent biotech investor Brad Loncar, selected 28 companies — some listed on the Hong Kong Stock Exchange and the rest on the Nasdaq — to wrap up into an exchange-traded fund: Loncar China BioPharma ETF. The ticker is Nasdaq: $CHNA.

Brad Loncar

“Regulatory reform and a new rule allowing pre-revenue biotech companies to list on the Hong Kong Stock Exchange may signal a new era for innovative drug development in the region,” Loncar said in a statement. “We think this is an important trend in healthcare, as it has the potential to spur growth and benefit patients worldwide.”

The ETF tracks Loncar’s $LCHINA index, which he launched earlier this year. At the time, Loncar said he created the index in response to massive growth in China’s global biotech scene.

“China’s biopharma industry is on the cusp of a true revolution that has global implications,” Loncar said. “Until today, no good stock market index existed as a benchmark for following this important trend.”

The three largest components of the index are CSPC Pharmaceutical Group (5.37%), Guangzhou Baiyunshan Pharmaceutical Holdings (5.16%), and Sino Biopharmaceutical (4.94%), as of August 7, according to this SEC filing.

Here at Endpoints News, we’ve been chronicling the rise of China biotech: from Chinese VC funds rushing into US biotech this year, to our latest E100 survey noting that biotech executives are paying a lot more attention to the East.

“China’s goal of moving its life sciences industry towards innovation is one of the most exciting themes within biotechnology, and the Loncar China BioPharma ETF gives investors a front row seat to this transformation,” said Garrett Stevens, CEO of Exchange Traded Concepts, Loncar’s partner on the ETF.

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