Favorable policies support biopharmaceutical stocks

China's encouraging policies for the biological industry are supporting the biopharmaceutical sector's share prices, industry observers said.

The National Development and Reform Commission, China's top economic planner, issued its 12th Five-Year Development Plan for the Biological Industry early last month, showing that the biological pharmaceutical sector is one of the seven key industries that China will support by 2020.

The plan stipulates that the annual growth of the sector should be 20 percent in the coming three years. The average increase in the biopharmaceutical sector's stock prices was estimated at 2 percent on the Shanghai Stock Exchange last month.