HK Stock Market Move | Most CRO concept stocks are on the rise, and the momentum of the development of biopharmaceuticals is continuing. UBS is optimistic about the profit prospects of the CRO industry in the near future.

Most CRO concept stocks are on the rise, as of the time of publication, WUXI BIO (02269) rose 3.28% to HK$17.02; WuXi AppTec (02359) rose 3.03% to HK$52.65; Pharmaron Beijing (03759) rose 1.72% to HK$13.02; Asymchem Laboratories (06821) rose 1.16% to HK$47.85. UBS released a research report stating that the Chinese healthcare industry faced challenges last year, including domestic medical insurance cost control, weak consumer market conditions, and geopolitical tensions. However, looking towards 2025, the sector's risks are skewed towards the upside. Industry valuations and institutional holdings are at historically low levels, combined with a more favorable macro environment for industry development. Investors are expected to find structural opportunities in uncertainty. The bank stated that the momentum of biopharmaceutical development remains strong, with optimism about the recent profit prospects of CRO. They believe that the fundamentals of many biotechnology companies are sound, and with government support for pharmaceutical innovation policies, leading companies are likely to achieve sustained revenue and expenditure balance in the next two years driven by rapid product sales growth.