Loncar Investments launches China BioPharma Index

Mar 22nd, 2018 | By | Category: ETF and Index News

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Loncar Investments has launched the Loncar China BioPharma Index, the world’s first global index to track the performance of companies leading China’s biotech revolution. The index is suitable as the underlying reference for investment products such as ETFs.

Loncar Investments launches China BioPharma Index

The index provides exposure to stocks from firms leading China’s biotech revolution, listed on either Nasdaq or Hong Kong stock exchange.

With a focus on innovators, the index contains pharmaceutical companies, biotech companies, drug manufacturers, diagnostics companies, wholesalers, distributors, and service providers listed globally that play a strategic role in growing China’s drug industry.

“China’s biopharma industry is on the cusp of a true revolution that has global implications,” said Brad Loncar, CEO of Loncar Investments. “Until today, no good stock market index existed as a benchmark for following this important trend. [The index] is designed to be a global standard that anyone can use to quantify and track China’s exciting biotech story going forward.”

Eligible securities are drawn from those listed on either Nasdaq or the Hong Kong stock exchange.

According to Loncar Investments, Chinese biopharma innovators with global ambitions will most likely list on these exchanges considering their deep pools of sophisticated biopharma investors and high corporate governance standards. These exchanges’ global presence and ease of access also make them well-suited for investors who want to track an index.

The index uses a modified equal-weighting methodology that aims to capture both the significant potential of China’s overall biopharma industry and the entrepreneurial spirit of innovators transforming it today. It is rebalanced and reconstituted on a semi-annual basis.

There are currently 32 holdings, including Shanghai Fosun Pharmaceutical Group, BeiGene, Genscript Biotech, Zai Lab and Hutchison China MediTech.

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