WuXi Apptec Stops Diving After SSE Asks Stockholder to Amend Surprise Share Sale
Wei Zhongyuan
DATE:  Jun 17 2021
/ SOURCE:  Yicai
WuXi Apptec Stops Diving After SSE Asks Stockholder to Amend Surprise Share Sale WuXi Apptec Stops Diving After SSE Asks Stockholder to Amend Surprise Share Sale

(Yicai Global) June 17 -- Shares of China's WuXi AppTec, which counts the world's top 20 pharmaceutical giants as its clients, stopped sliding after the Shanghai Stock Exchange ordered an investor to compensate for its recent unexpected equity sale which had sent the shares spiraling down.

Wuxi AppTec’s Shanghai-listed shares [SHA: 603259] were flat at CNY135.95 (USD21.20) in the afternoon. Its Hong Kong-listed equity price HK:2359] was 1.6 percent up at HKD158.80 (USD20.50). But the two equity prices are still more than 4 percent down since June 8.

Shanghai-based Yingyi Investment Center needs to file a self-inspection report, which must include a list of people who knew about the shareholding reduction plan in advance, and compensate for the impact as soon as possible to protect the rights and interests of investors, the SSE had written in a notice to the Shanghai-headquartered drugmaker on June 15.

Yingyi had sold 17.2 million shares, worth CNY2.9 billion (USD451.7 million), between May 14 and June 8, breaking its agreement with Wuxi Apptec penned before the latter's initial public offering in Shanghai in May 2018, the medical firm said in a statement on June 11. The company listed its shares also in Hong Kong in December 2018.

Yingyi was founded in 2015 by several financial institutions, according to public information. It now has a 0.14 percent stake in Wuxi AppTec, down from the earlier 0.84 percent.

The transfer was big and the social impacts on Wuxi Apptec are large but it remains to be seen how harsh the regulator's punishment will be, a securities lawyer said to Yicai Global. Minor cases might be buried with a warning, the person, who wished to remain anonymous, added.

Editors: Dou Shicong, Emmi Laine, Xiao Yi

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Keywords:   Wuxi Apptec,CSRC,Shares Reduction