(Yicai Global) Nov. 14 -- Shares of Chinese pharmaceutical companies soared after the country's cabinet relaxed its Covid-19 prevention and control policy.

Cosunter Pharmaceutical [SHE: 300436], a Fujian province-based firm that is working on an oral drug for the novel coronavirus, jumped by the daily limit of 20 percent to close at CNY51.60 (USD7.30).

Yiling Pharmaceutical [SHE: 002603], a producer of a traditional Chinese medicine called Lianhua Qingwen that is recommended by Chinese authorities to treat mild Covid symptoms, rose by the limit-up of 10 percent to CNY34.33.

Other winners were drug distributors, including Chengdu-based online retailer Hz-Yeg Medical [SHE: 300937] and Changsha-headquartered Yifeng Pharmacy Chain [SHA: 603939].

The State Council of China released a document on Nov. 11 to optimize the country’s Covid-19 policy. This means that people in high-risk areas no longer need to go to a designated facility for quarantine but can stay home. Close contacts of patients will have to go to a facility for five days instead of seven days and after that stay home for three days. One step further, close contacts of close contacts will not be tracked.

The announcement prompted Citic Securities to predict today that oral Western medicine and Covid-related TCM will be an important guarantee in the future of actions to deal with the pandemic.

After the nationwide policy shift, major Chinese cities such as Beijing, Shanghai, and Guangzhou announced that they will adjust their anti-Covid policies. 

The nation will strengthen its medical resources, encourage people to receive Covid-19 vaccines, increase its reserves of drugs to treat symptoms, and hike the protection of key groups, per the cabinet's document. 

Editors: Dou Shicong, Emmi Laine, Xiao Yi