HK Stock Market Move | Pharmaceutical stocks continued their recent downward trend, with Junshi Bio (01877) falling by nearly 8% and Pharmaron Beijing (03759) dropping by over 6%.

In the early trading of pharmaceutical stocks, the recent downtrend continued, with CRO leading the decline. As of the time of writing, JUNSHI BIO (01877) fell 7.98% to HK$27.22; Pharmaron Beijing (03759) fell 6.3% to HK$24.4; Asymchem Laboratories (06821) fell 5.69% to HK$91.95; and Hangzhou Tigermed Consulting (03347) fell 3.48% to HK$42.4. Cinda pointed out that the recent pharmaceutical market trend has been relatively weak, speculating on the following reasons: 1) On September 30, the Trump administration announced an agreement with Pfizer to lower the prices of some drugs in the United States. This move was seen as a signal of reconciliation between American pharmaceutical companies and the Trump administration, combined with expectations of interest rate cuts, the American XBI rose sharply, leading to a "seesaw effect" in the domestic pharmaceutical index, with Hong Kong stocks Biotech companies experiencing a more pronounced pullback; 2) Recently, several important overseas MNC acquisitions have been finalized; 3) On October 9, during the Senate's consideration of the annual National Defense Authorization Act, a motion was supported to prohibit certain Chinese biotechnology companies from receiving federal funds, seen as a new version of the "biosecurity act", resulting in a sharp pullback in the CXO sector. Furthermore, recent signs of tension have appeared in the US-China trade relationship, with both sides escalating their game in key areas. Founder believes that the return of the trade war does not need to be overly worried about in the pharmaceutical market. As the second trade war this year, the market has already anticipated the US-China game, especially within the pharmaceutical industry. Since the first trade war in April, the performance of innovative drugs and the CXO industry has been outstanding, far ahead of other sub-industries. Innovation drugs stem from China's rise in independent innovation and the continuous realization of overseas BD, not affected by tariffs; the CXO sector benefits from the continuous efforts of overseas business, strong stickiness between upstream and downstream, and the service pricing model of CXO allows companies to relatively freely transfer tariff pressures.