(Yicai) April 7 -- Shares of Tiantan Biological Products, Pacific Shuanglin Bio-Pharmacy, and other Chinese blood product companies surged despite broad index slumps, driven by tariff hikes expected to accelerate a shift toward alternatives produced by fewer than 30 domestic firms.

Tiantan [SHA: 600161], one of China’s largest blood product suppliers, closed up 6.4 percent at CNY22.02 (USD3). Rival Pacific Shuanglin [SHE: 000403] jumped 10 percent to CNY24.10, while Weiguang Biological Products [SHE: 002880] also rose 10 percent to CNY30.51.

The rally came in contrast to a steep sell-off across China’s major stock indexes, following a sharp downturn in US markets during the previous trading day. The Shanghai Composite Index dropped 7.3 percent, the Shenzhen Component Index fell 9.7 percent, and the ChiNext Index, which tracks growth enterprises, plunged 12.5 percent.

On April 2, the Trump administration announced a 10 percent tariff on global imports, with higher rates targeting specific economies -- including an additional 34 percent tariff on Chinese goods, on top of existing 20 percent duties. In response, China imposed a 34 percent tariff on all US-origin products on April 4.

According to multiple analysts, the new tariffs are expected to strengthen China's domestic blood product industry. Blood products refer to components derived from human blood, such as albumin, immunoglobulins, and clotting factors. The US remains the world’s largest supplier of these products.

Everbright Securities noted that with limited competition due to regulatory constraints, domestic producers -- particularly in albumin -- are well-positioned to accelerate import substitution amid ongoing trade tensions, unlocking new growth opportunities.

China has long maintained strict controls over blood product manufacturers for biosecurity reasons, capping the number of licensed firms at fewer than 30, with no new approvals issued since May 2001.

Editors: Dou Shicong, Emmi Laine