Cutia Therapeutics experienced a significant boost in its shares on Tuesday afternoon following the announcement of its inclusion in a trading-link scheme that permits mainland Chinese investors to trade its shares.
The shares of Cutia surged by 10% to HK$29.1 (US$3.71) and reached HK$31.00 earlier in the day. The company revealed in a filing that it had been added to the list of stocks for the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect southbound trading links, effective immediately.
As part of the southbound trading link scheme, eligible mainland investors can now trade Hong Kong-listed stocks, subject to daily quota restrictions.
Cutia, a biopharmaceutical company with a focus on dermatology, believes that this inclusion will help expand its shareholder base, provide access to a broader group of investors in China, and enhance the liquidity of its shares.
“We will continue to leverage our competitive advantages, strive to offer comprehensive dermatology treatment and care solutions to patients, and generate value for our shareholders,” stated Zhang Lele, the CEO of Cutia.
Cutia went public in June in Hong Kong through an offering that successfully raised over HK$450 million.