(Yicai Global) Nov. 15 -- Shares of Yiling Pharmaceutical rallied by the daily exchange-imposed limit after an employee of the Chinese drugmaker said the firm is matching rising demand for a type of traditional Chinese medicine used to treat Covid-19 symptoms with added supply.

The stock price of the maker of Lianhua Qingwen [SHE: 002603] surged by 10 percent to close at CNY37.76 (USD5.40). The shares have moved up nearly 70 percent over the past month.

Over the past two years, Yiling has been increasing its production capacity of the herbal medicine mainly used to treat influenza before the Covid-19 pandemic, Chinanews.Com reported today, citing an employee of the Shijiazhuang-based firm. The company is not planning to hike its prices, the source added.

The worker also commented on a recent media report that said Lianhua Qingwen capsules were sold out in some pharmacies in Shijiazhuang, the capital of northern Hebei province. The firm was not aware of this, the source said. The medicine has been in high demand since the National Health Commission included it in a list of products recommended to be used to treat Covid-19 symptoms.

The product is important to Yiling as such revenue tallied CNY4.1 billion (USD576.6 million) last year, making up more than 40 percent of the firm's total.

Shijiazhuang has quickly adjusted to the central government's easing Covid-19 prevention and control policy. Apart from tourist attractions and hotels, the city yesterday canceled an earlier policy of requiring residents and visitors to get regular PCR tests done to use public transport or visit department stores.

Editor: Emmi Laine, Xiao Yi