(Yicai Global) July 24 -- Fund managers in China have slashed their share price targets for a number of listed Chinese biotech firms amid a deepening scandal involving a vaccine maker that is being investigated for fabricating data, state-backed news site The Paper reported.
Kangtai Biological Products [SHE:300601] fell 10 percent today to CNY52.16 (USD7.66) after having its price target cut yesterday to CNY42.25 at Bank of China Investment Management, FullGoal Fund Management and Zhong Ou AMC, and to CNY46.95 at Rongtong Fund Management.
Zhifei Biological Products [SHE:300122] ended 4 percent lower at CNY42.36 after FullGoal Fund trimmed its assessment to CNY39.69, while Changchun High & New Technology Industries retreated 4.3 percent to CNY205, closing in on FullGoal Fund's new target of CNY192.78.
Fund managers adjust stock valuations mainly to prevent arbitrage from harming investors' interests, according to analysts. Their latest moves indicate pessimism over the future of these listed biotech companies and serve as a reference for other market participants.
The adjustments came on the same day that Premier Li Keqiang called for a nationwide investigation into the country's vaccine makers on the back of a rabies product scandal at Changsheng Bio-technology, the country's second-biggest vaccine producer.
Editor: William Clegg