(Bloomberg) -- Chinese pharmaceutical stocks rose amid speculation that authorities are working on a plan to support the development of world-leading innovative drugs.

The CSI 300’s healthcare sub-gauge rose as much as 3.6%, the most since Feb. 6, before paring the gain. Drugmaker stocks rose as analyst firms, including Nomura Holdings Inc., cited an unverified government document detailing a plan for “full-scale support” for innovative drug development.

While its authenticity has yet to be confirmed, the document indicates several steps, including more support for a stable financing environment and better insurance coverage for innovative drugs, Jialin Zhang, head of China healthcare research at Nomura, wrote in a note.

Sichuan Kelun-Biotech Biopharmaceutical Co. surged 29% in Hong Kong and another drugmaker InnoCare Pharma Ltd. rose as much as 13% in mainland trading.

“We believe the government will support the development of a stronger and more innovative healthcare industry by providing more financial and regulatory resources in the next few years,” UOB Kay Hian analyst Carol Dou wrote in a note.

Chinese biotech firms have been under pressure after a US Senate committee advanced a bill that may ban some of the nation’s firms from accessing federal contracts. The legislation would also largely cut off WuXi AppTec Co. from the market that generates more than half of its revenue.

The sector had been hit last year by a broad, year-long anti-graft campaign to root out corruption in the pharmaceutical industry.

Companies that manufacture drug ingredients on contracts for other brands will benefit from more from domestic innovative product pipelines, Dou said.

--With assistance from Dong Lyu.

(Updates with analyst comment in eighth paragraph)

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