FX168 Financial News Agency (Asia-Pacific) reported that on Monday (December 9), the stock prices of wuxi apptec and wuxi bio soared. Previously, a legislative proposal aimed at chinese biotechnology service companies was excluded from the usa Defense Authorization Act amendment.

On Monday, wuxi apptec's stock price rose by as much as 12% in early trading in Hong Kong, reaching a two-month high. Wuxi bio's stock price increased by 13%, while bgi genomics' price in shanghai rose by 4.3%.

The proposal, named the Biosecure Act, not being included in the usa Defense Authorization Act amendment is undoubtedly a bullish signal for these companies. If this act takes effect, these companies may be banned from participating in federally funded contracts. This would force global pharmaceutical companies to cut ties with china's drug research and contract manufacturing firms.

The Biosecure Act aims to limit the business interactions between the usa federal government and certain biotechnology providers under the guise of national security. Companies listed on the restriction list include wuxi apptec, wuxi bio, bgi genomics, bgi intelligent manufacturing, and its subsidiary Complete Genomics.

Although the act could still pass, the likelihood is rapidly decreasing as the usa Congress is about to enter recess.

"This situation exceeded investors' expectations and is a bullish signal," said Jefferies analyst Cui Cui and her team in a report. They reiterated that wuxi bio is their preferred buy symbol.

Analysts at morgan stanley stated that this is a "strong bullish signal" for wuxi-related companies and other chinese firms offering contract research, development, and manufacturing services aimed at overseas markets.

Although the act was passed by the House back in September, opposition to it has been growing in recent months. Some influential lawmakers oppose directly naming specific companies without proper procedures.

A spokesperson for wuxi apptec stated in an email: "We will continue to provide facts about our company to lawmakers and federal agencies, explaining the important services we provide for clients in the usa and globally."

Other companies listed in the "Biodefense Act"—bgi genomics, bgi group, and its subsidiary Complete Genomics Inc.—refused to comment. Wuxi bio has not yet responded to the request for comment.