The crisis of the Biosafety Law has been resolved. MGI Tech Co., Ltd. (688114.SH) closed up 4.49% today after a sharp decline in its stock price.

On December 10th, according to Wind data, MGI Tech Co., Ltd. (688114.SH) opened at 54.38 yuan, reached a high of 54.88 yuan, with a maximum increase of 7.19%, and closed at 53.50 yuan, up 4.49% from the previous trading day, with a turnover rate of 2.671%. The company's positive performance today indicates that the market's attention to and confidence in MGI Tech Co., Ltd. has increased. On the news front, MGI Tech Co., Ltd.'s stock price today benefited from a variety of positive factors. On December 7th, the US Congress's National Defense Authorization Act for Fiscal Year 2025 (NDAA) was released, with the biosecurity act not included. In the future, due to changes or retirements in the bill's sponsors, the legislative process remains challenging. This is helpful for the biopharmaceutical industry, boosting market confidence and easing the pressure on related biotechnology companies, including MGI Tech Co., Ltd. In addition, domestic policy support has also provided strong support for MGI Tech Co., Ltd.'s stock price. On December 5th, the Ministry of Finance issued a new "Notice" clarifying and detailing the definition and price advantages of domestic products, and proposed to give domestic products a 20% price evaluation advantage over non-domestic products in government procurement activities. The introduction of this policy provides a new standard for gene sequencer companies with a high degree of localization, helping them expand their market space and break the stalemate of importing high-end medical devices. Additionally, recent policy adjustments such as the further upgrade of the People's Bank of China's special reloaning tool for stock repurchase and holdings have injected more funds into the stock market, further stimulating market enthusiasm. Since the beginning of 2024, a series of external factors such as market fears about the biosecurity act and concerns about weak domestic demand led to an overselling of the company's stock price. With further removal of international market barriers and the introduction of favorable domestic market policies, MGI Tech Co., Ltd.'s market share globally is expected to gradually increase, and its valuation is expected to gradually recover. According to data from Baidu Tendering, in the first three quarters, MGI Tech Co., Ltd. led the gene sequencer market with a market share of 55.05%, firmly holding the leading position in the sequencer industry.