HK Stock Market Move | Some CRO concept stocks rose in the morning. The Biosecurity Bill is not included in the US Senate NDAA, making it unlikely to be passed this year.

In early trading, some CRO concept stocks rose. As of the time of publication, WuXi AppTec (02359) rose by 3.53% to HK$44; WUXI BIO (02269) rose by 2.39% to HK$13.72; Asymchem Laboratories (06821) rose by 1.89% to HK$48.4; Hangzhou Tigermed Consulting (03347) rose by 1.26% to HK$28.15. On the news front, according to media reports, the Senate Armed Services Committee of the United States publicly released the Senate version of the Fiscal Year 2025 National Defense Authorization Act (NDAA), which includes 93 amendments but does not include proposals related to the "biological safety bill". Huachuang Securities believes that the biological safety proposal has basically been declared a failure through this channel, and the probability of passing a separate legislative channel within the year is very low. The possibility of other potential legislative channels being implemented is also becoming lower, with little hope for passing within the year, and the CXO sector may see marginal improvements. Furthermore, the recent interest rate cut by the Federal Reserve has accelerated the recovery of the global biopharmaceutical industry. China Securities Co., Ltd. research report pointed out that since the Federal Reserve announced its first interest rate cut since March 2020, global liquidity has marginally improved, and the investment and financing prosperity of the pharmaceutical industry is expected to recover rapidly with valuation advantages. As the rate cut cycle kicks off, pharmaceutical investment and financing are expected to gradually recover, and the increase in research and development demand will benefit global competitive CXO leaders and leading companies in specific areas.