HK Stock Market Move | Most pharmaceutical stocks are rising, and centralized procurement is further optimized to prevent internal competition. Institutions are optimistic about the pharmaceutical sector breaking out of the downturn trend.

Most pharmaceutical stocks are on the rise. As of the deadline, WUXI XDC(02268) rose by 6.82%, to 75.2 Hong Kong dollars; INNOCARE(09969) rose by 5.72%, to 17.38 Hong Kong dollars; WUXI BIO(02269) rose by 3.86%, to 39.24 Hong Kong dollars; ASCLETIS-B(01672) rose by 3.09%, to 11.01 Hong Kong dollars; Jiangsu Hengrui Pharmaceuticals(01276) rose by 2.74%, to 90 Hong Kong dollars. In terms of news, the National Medical Insurance Administration issued the eleventh batch of national centralized drug procurement documents. In the process of formulating and modifying this batch of procurement plan, the principle of "stability in clinical use, quality assurance, prevention of bidding traps, and anti-inward rotation" was fully followed. The document mentioned that this round of centralized procurement optimized the selection of the "anchor" for price difference control, no longer simply choosing the lowest bid. Guotai Hong Kong believes that the optimization of procurement rules reflects the positive efforts of the Medical Insurance Administration to promote the "anti-inward rotation" of the pharmaceutical industry, and the domestic demand market is expected to continue to improve. Sinolink research report pointed out that it continues to have strong confidence in the pharmaceutical sector breaking out of the reversal trend by 2025, and that the reversal of the innovative drug mainline and the left-side sector is still the greatest investment opportunity for the pharmaceutical sector in 2025. The bank believes that the upward trend of the innovative drug industry remains unchanged. Due to the patent cliff facing major products from overseas MNCs, the strategy of introducing pipelines through BD to fill revenue gaps is expected to continue in the future. Authorizations and collaborations of global innovative drug products have become more intensive in the second half of the year, and the market for innovative pharmaceuticals is awaiting continuous catalysis. Soochow also believes that, under the background of interest rate reduction, the prosperity of the biomedical engineering industry continues to rise, and the upstream of the life sciences industry and CXO sector are expected to benefit.