Chinese Biotech Stock’s 4,500% Surge Sparks Fear of Market Froth

A Chinese biotech firm has skyrocketed more than 4,500% in the three months since its Hong Kong debut, stoking worries of speculative buying.

Shares of TransThera Sciences soared as much as 64% to HK$679.50 in Hong Kong trading on Tuesday, after pricing at just HK$13.15 in late June. The more than 50-fold gain has made it the top performer on the Hang Seng Healthcare Index this year.