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To maintain a focus on innovation in the Chinese biopharma sector, companies in are screened to eliminate those that focus strictly on manufacturing active pharmaceutical ingredients. Additionally, the remaining companies only include those whose principal corporate headquarters is in China or at least 51% of the value of their product revenue and pipeline is tied directly to the Chinese market. The pool is further screened for investibility.
The index also follows a modified equal-weighted methodology to emphasize the role of larger companies in the index.
“We are proud to deliver another cutting-edge, biotech-focused product to the market,” J. Garrett Stevens, CEO of Exchange Traded Concepts, said in a note. “China’s goal of moving its life sciences industry towards innovation is one of the most exciting themes within biotechnology, and the Loncar China BioPharma ETF gives investors a front row seat to this transformation.”
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