Bloomberg Emerging Markets Tech Index Enters Bear Market; SK Hynix Down 40%, Samsung 29%
The Bloomberg Emerging Markets Technology Index has fallen into a technical bear market over the past month, with South Korea's SK Hynix and Samsung Electronics dropping 40% and 29%, respectively. In contrast, China's healthcare sector emerged as the best-performing group in the benchmark index, led by a 52% surge in CSPC Innovation Pharmaceutical. The company, which is developing an RNA-based kidney disease therapy, struck a deal with AstraZeneca for up to $1.8 billion in global rights.
Over the past month, the Bloomberg Emerging Markets Technology Index has fallen into a technical bear market. Shares of South Korean companies SK Hynix and Samsung Electronics dropped 40% and 29%, respectively. During the same period, at least 10 Chinese pharmaceutical stocks posted double-digit gains, making healthcare the best-performing sector in the Bloomberg Emerging Markets benchmark index.
Chinese drug developer CSPC Innovation Pharmaceutical saw its stock surge 52% in the past month. The company is developing an RNA-based therapy for kidney disease and announced a deal with Anglo-Swedish drugmaker AstraZeneca, which agreed to pay up to $1.8 billion for global rights to the therapy.
Chinese pharmaceutical companies are independently developing innovative drug candidates and licensing them to multinational pharmaceutical giants for commercialization. An increasing share of Chinese drugmakers' revenue comes from successful drug development. Intellectual property is increasingly flowing from China to Western pharmaceutical companies.