This article only represents the author's own views.
Chinese drug stocks haven’t found much love on Wall Street these days, as investor impatience wears thin over their money-losing ways and Beijing’s tough price controls that make it difficult to turn profits. But biotech firm ArriVent BioPharma Inc (AVBP.US) is proving to be an exception, following a solid performance for its IPO, including an 11% jump for its shares in their Friday trading debut.
This particular IPO looks unusual among China-linked new listings for a number of reasons beyond the first-day jump. Its underwriters included an A-list of investment banks, led by Goldman Sachs, Citi and Jefferies. Those banks have largely avoided New York listings by Chinese companies for the last two years due to regulatory issues in both the U.S. and China, though they are slowly coming back to the market now that those issues have been mostly resolved.