HK Stock Market Move | WUXI BIO (02269) rose more than 6%, leading the CRO concept. The Federal Reserve announced aggressive interest rate cuts, and financing for innovative drug research is expected to continue to improve.

Concept stocks related to CRO rose across the board in the morning session. As of the time of writing, WUXI BIO (02269) was up by 6.25% to HK$12.24, Hangzhou Tigermed Consulting (03347) was up by 5.2% to HK$27.3, Pharmaron Beijing (03759) was up by 5.34% to HK$10.06, and Asymchem Laboratories (06821) was up by 4.63% to HK$44.1. On the news front, the Fed announced a 50 basis point cut in the target range for the benchmark interest rate, lowering it to 4.75% to 5%, marking the first rate cut since March 2020. Guotou Securities pointed out that, from the perspective of the year-on-year growth rate of VC & PE investment in innovative drugs, global investment in innovative drugs temporarily declined in August 2024, but overall has been improving since 2024. Zheshang also stated that global investment is bottoming out, with a low base in the second half of 2023, and leading orders remaining stable. They are focusing on companies where orders/turning points in performance are appearing. In addition, the U.S. House of Representatives previously passed the "Biological Safety Act". Citigroup previously stated that it is unclear whether the U.S. Senate will adopt the House version of the "Biological Safety Act" or another version, or attach a larger bill to the "Biological Safety Act". The bank believes that the stock prices of WuXi AppTec and WUXI BIO are undervalued.