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Chinese Biotech Stock Soars on New Cannabis Subsidiary

Chinese Biotech Stock Soars on New Cannabis Subsidiary

(Bloomberg) -- Shineco Inc. shares doubled in U.S. trading after the Chinese biotech company said it has established a cannabis-focused subsidiary.

  • Shares of the Beijing-based company opened at their highest level since July, rising as much as 142 percent
  • Shineco aims “to expand in the industrial cannabis market including planting, CBD processing, CBD derivatives development and the comprehensive utilization of industrial hemp”
  • The company produces and distributes plant-based health products in China; its market valuation was $15.1 million as of Monday’s close

To contact the reporter on this story: Rebecca Choong Wilkins in New York at rchoongwilki@bloomberg.net

To contact the editors responsible for this story: Courtney Dentch at cdentch1@bloomberg.net, Catherine Larkin

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