HK Stock Market Move | XUANZHUBIO-B (02575) rose over 7% in early trading; the company issued a clarification announcement, disclosing that it is in negotiations regarding a potential acquisition.

XUANZHUBIO-B (02575) rose over 7% in early trading. As of press time, it was up 3.91% at HK$9.445, with a turnover of HK$26.7621 million. On the news front, market chatter during yesterday's session claimed that Xuanzhu Bio had signed a tripartite commercial agreement with Thailand's Innobic for pirfenidone tablets, sending the stock surging over 40% at one point. Xuanzhu Bio issued a clarification announcement stating that it had noted the rise in its share price yesterday. After making enquiries, the board confirmed that it was not aware of any reason for the movement, or of any information that must be disclosed to avoid a false market in the shares, or of any inside information that must be disclosed. The announcement stated that the company is currently in preliminary discussions with a party regarding a potential acquisition, and negotiations are still ongoing. The terms and conditions of the potential acquisition have not yet been finalized, and the group has not entered into any formal agreement in respect of the potential acquisition. There is no assurance that the potential acquisition will proceed or ultimately be completed. Accordingly, the potential acquisition may not proceed.