China Weight-Loss Drug Stocks Lose Shine on ‘Misleading’ Claims
- Bai Hua Cun backtracks on ties to semaglutide, liraglutide
- Sector’s recent rally bucked sluggish trend in China stocks
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One of the few bright spots in China’s battered equity market is evaporating, with weight-loss drugs plunging after a company apologized for earlier misleading investors on such treatments.
Shares of Xingjiang Bai Hua Cun Pharma Tech Co. plunged by the 10% limit after surging by the same magnitude over the past four sessions. The drug developer said the shares have “severely deviated from the fundamentals” as it backtracked from an earlier affirmation of its connection to weight-loss treatments.