Wuxi Biologics (HKG: 2269) (OTCPK: WXXWY) shares are up 8,5% in Hong Kong. It'll be interesting to see whether WXXWY stock follows them up or not. That rather depends upon the liquidity on the OTC and thus the bid/offer spread. It's entirely possible for such a spread, on a low liquidity stock, to be larger than that. Thus price movements on the one market feed through slowly, if at all, to the other.
There's also, as far as we can see at least, no specific news driving this movement. But then Wuxi Biologics can be pretty volatile, as we noted before: “Wuxi Biologics (HK: 2269) (OTCPK: WXXWY) shares are down by near 17% on Hong Kong on the day. There's no specific announcement from the company that justifies this - for a stock of this size in Hong Kong at least - large shift in the share price. One potential answer is simply that the price has been strong recently and so this is a reversal due to profit taking. That might even be true but that's still a pretty big price move to come stem from such a factor.”
That price move really was just one of those things.
Wuxi Biologics share price from Hong Kong Stock Exchange
Again, today, with this 8,5% cruise, there seems to be no specific piece of news driving it. The big news surrounding Wuxi is the demerger of the international business as an IPO: “WuXi Biologics proposed spin-off and a separate HKEX listing of its subsidiary WuXi XDC means the company will be able to better capture the fast-growing global bioconjugate market.” But that's not new news. We've known that for a few days now: “Wuxi Biologics holds a 60 per cent controlling stake in Wuxi XDC, which will remain its subsidiary after the spin-off, according to a filing submitted to the stock exchange on Sunday. The company did not disclose the amount it hopes to raise.” We're on Thursday now, so we'd expect a Sunday announcement to already be in the share price.
The best guess - and it has to be a guess, given the lack of new information - is simply that opinions as to the value of that spin off are changing. Therefore so is the buying pattern in Wuxi Biologics shares.