Chinese biopharma stocks trading in Hong Kong on Monday

The Hang Seng Biotech Index was also up more than 5%.

The moves followed a Reuters report Friday, citing people briefed on the process, that the U.S. Treasury Department is drafting rules that would likely allow American pharmaceutical companies to invest in promising new drugs being developed by Chinese firms, excluding those related to pathogens or biotechnology that could be weaponized. The rules have not been finalized and remain subject to change, said the report. 

That would put biopharma on a different track from sectors such as artificial intelligence and semiconductors, where the U.S. has tightened restrictions on China. 

Almost half of U.S. deals to license drugs from overseas in 2025 were with Chinese companies, according to GlobalData, as cited by Reuters.

Pfizer, for example, announced a partnership worth up to $10.5 billion with Innovent in May, covering the research and development of 12 oncology programs.

China’s out-licensing boom has continued despite geopolitical concerns. A record 81 deals worth a combined $110 billion were completed in the first half of 2026, according to NMPA data cited by Nomura.

The bank said investors now appear “largely immune” to intermittent geopolitical concerns around the sector, citing Chinese companies’ strong value proposition in novel drug development.

China has also made globalization a key goal for pharmaceutical and biotech companies under its 15th five-year plan, Nomura noted. Against that backdrop, the bank expects China-U.S. out-licensing deals to “ride on a high tide.”