HK Stock Market Move | Pharmaceutical stocks have been falling for several days due to short-term changes in the external environment. Institutions still have a positive view on the long-term industry development trend.

The pharmaceutical stocks have been continuously weak in recent days, with the decline expanding in the afternoon. As of the time of writing, VIVA BIOTECH (01873) fell by 7.53% to HKD 2.58; ASCLETIS-B (01672) fell by 7.09% to HKD 9.17; KEYMED BIO-B (02162) fell by 5.74% to HKD 64. Huaxin Securities stated that the trend of going global continued after Q3 of 2025, but there were few major BDs of listed companies, and the BDs in the form of NewCo did not meet market expectations. In the short term, the escalation of trade conflicts between China and the United States may cause concerns about the risk of decoupling in the future, but the global shift of innovation research and development to more efficient China is an unstoppable trend. The bank believes that the price negotiations between the U.S. government and MNCs will further strengthen the demand for China's new drugs with high efficiency and low cost. On the overseas front, the U.S. Senate passed a new version of the "Biosecurity Act," which did not name specific companies and had limited impact on Chinese CRO companies. Cinda believes that Chinese innovative pharmaceutical companies are heading towards the global stage and have global competitiveness in many niche areas. Although there may be a slight adjustment in the short term due to policy influences, the industry trend has not changed in the medium and long term, and the innovative drug sector remains an important theme for the next 2-3 years. In addition, Chinese CXO companies play an important role in the global innovative drug industry chain. The version of the Biosecurity Act has undergone multiple interpretations, and has almost no impact on the operations of leading companies. The CXO industry is currently in a stage of recovery in prosperity, with continuous performance growth expected to reshape market confidence.