AstraZeneca is considering a plan to separate its China business, and one option being explored is listing a separate unit in Hong Kong. However, a final decision on the separation has not been made, and listing the entity in Shanghai is also being considered. AstraZeneca's China president expressed the company's intention to be a patriotic entity in China that supports the Communist Party. China represented 13% of AstraZeneca's total sales last year, making it the country's largest pharmaceutical company.

The potential spin-off of AstraZeneca's China business could serve as a protective measure amid rising tensions between China and other global powers. AstraZeneca aims to mitigate any negative impact from geopolitical challenges by retaining control of the business while separating it. The idea of a spin-off has been discussed for several years but was temporarily set aside due to the downturn in the global biotech industry. AstraZeneca, however, is not the only pharmaceutical company that decided on a spin-off, as Novartis already announced a similar thing with their Sandoz and is planning to realize it later this year.

Movement of AstraZeneca stocks in the last five years. (Source: Trading Economics)