(Yicai) Feb. 21 -- American investment manager Capital Group Companies has gained HKD8.7 million (USD1.1 million) in five days by increasing its shareholding in recovering WuXi AppTec.

Capital Group bought 975,500 H-shares at an average price of HKD38.433 (USD4.90) apiece on Feb. 15, resulting in a total investment of HKD37.5 million (USD4.8 million), according to a bourse filing released on Feb. 19. The boost generated as much as HKD10 million as of noon today before the stock slightly fell back.

The Hong Kong-listed shares of WuXi AppTec [HKG: 2359] jumped 4.8 percent to close at HKD47.40 (USD6.10). Its Shanghai-listed equity [SHA: 603259] moved up 4.2 percent to CNY53.74 (USD7.50).

This is Capital Group's third such purchase this year as one of the world's oldest investment managers added 2.4 million shares on Feb. 2 and 395,200 shares on Jan. 10. And it made several purchases last year too.

Founded in California in 1931, Capital Group is a privately held company with offices in Europe, Asia, Australia, and the Americas, employing over 9,000 people. As of Dec. 31, last year, the company managed assets totaling over USD2.5 trillion.

The Shanghai-based biotech company is rebounding after bad news. Wuxi AppTec dived after Yicai reported on Jan. 26 that a new bill called the Biosecure Act, introduced by a committee of the United States House of Representatives, has gained bipartisan support from lawmakers. The bill puts WuXi AppTec and Shenzhen-based BGI Genomics on a list of “biotechnology companies of concern,” and if it is passed, it would block their access to federal funding in the United States.

In response to the draft, WuXi AppTec has issued multiple clarifications and conducted a CNY1 billion (USD140 million) buyback of its A-shares on Feb. 5.

Editor: Emmi Laine