#WuXi stocks flash crash across the board in the afternoon##Share stock market bits##时事热点头条说#
This afternoon (20240126), affected by the news that "the United States plans to introduce the "Biosecurity Act" to ensure that foreign biotechnology companies cannot obtain funds from U.S. taxpayers, and name two Chinese companies: BGI Group and its subsidiaries MGI, Complete Genomics, and WuXi AppTec", the domestic innovative drugs and CXO sectors represented by WuXi AppTec crashed across the board, WuXi AppTec's A-shares fell to the limit, and Hong Kong stocks fell by 30%, and finally closed down 16%; MGI, on the other hand, rebounded quickly after falling 18% sharply, closing down 5%.
The same rumors were targeted, why was MGI able to take a V-shaped rebound while WuXi was able to fall directly?
This is mainly due to the fact that the two companies have different revenue markets. WuXi AppTec's revenue is 66% in the U.S. market (Q3 report), while the Chinese market contributes only 18%, while MGI's revenue comes from the Chinese market 49% and the Americas market only accounts for 4.6%. The difference in the contribution of the U.S. market to the two companies' revenues is clear. Moreover, if the United States really passes the bill (although the probability is very low), the mainland will definitely take reciprocal countermeasures, so that MGI will quickly fill the gap of American companies in the domestic market, and WuXi's domestic revenue is not ideal, even if American companies withdraw, they will not be able to occupy this part of the market. Therefore, this led to the fact that MGI was also targeted, and MGI was able to take a V-shaped rebound while WuXi was directly down to the limit.