Letter From Shanghai No 989 - A New Vaccine In Shanghai

Global bond yields fell yesterday (Tuesday) as investors grasped mixed economic data as a justification that the Fed may alter its trajectory of interest rate increases. While a 75bps increase in November is widely anticipated, the market is now debating if December's increase will be 50bps or 75bps. On that narrow margin, the S&P has risen 8% since its 12th October low. US rates, which were 0.25% in March this year, are now 3.25% and maybe 4.0% next week, and the market argues either 4.50% or 4.75% in December, which seems such a small difference from which to initiate an equity rally.

The Hang Seng followed Monday's 6.5% fall with a .10% fall on Tuesday to its lowest level since April 2009 and down 41.75% YoY. The CSI 300 closed down 0.16%, even though there was a deep suspicion that the national team was active in mainland markets. Chinese markets will have their chance to react to global optimism this morning.

However, the big news for myself is an announcement made late yesterday that Shanghai is now the first and so far only city to roll out an inhaled adenovirus type-5 vector-based Covid-19 vaccine. The vaccine is available as a booster to previous medications as of today, and Shanghai residents are invited to register for an appointment, but as with the previous rollout of booster shots, I expect foreigners will have to wait for some time.

In a video circulating in Shanghai, the aerosolized vaccine is contained in an enclosed clear plastic cup similar in size to a tall Starbucks coffee with the lid on. To get vaccinated, one only has to bite the mouth/straw on top of the cup, take a deep breath to inhale the gas, and hold for five seconds. Although one has to wait at the vaccination centre for a further 30 minutes to ensure there is no immediate adverse reaction, I'm struck by the simplicity of the methodology. Presumably, the gas/vaccine goes straight into the throat, respiratory tract and lungs; there is no injection, so no need for specialist training to administer the medicine. In fact, in a dire emergency, one might imagine it could be distributed by the same system that supports the street-side Covid testing process. All those street-side booths potentially offering both testing and vaccination from one spot.

So, it is no surprise that the aerosolized Ad5-nCoV vaccine now available in Shanghai has been jointly developed by CanSinoBIO and researchers from the Institute of Military Medicine under the Academy of Military Sciences led by Chen Wei.??

Have a good day,

John