HK Stock Market Move | Innovative pharmaceutical concept stocks lead the decline, with signs of cooling in innovative pharmaceutical BD. The cooling of the expected interest rate cut may impact valuation and investment financing.

Concept stocks of innovative drugs are leading the decline. As of the time of writing, HBM HOLDINGS-B (02142) fell by 9.15% to 12.81 Hong Kong dollars; BRII-B (02137) fell by 7.56% to 1.59 Hong Kong dollars; REMEGEN (09995) fell by 5.83% to 80 Hong Kong dollars; INNOVENT BIO (01801) fell by 6.18% to 86.5 Hong Kong dollars. On the news front, according to Artery Network, there are signs of cooling in the innovative drug BD sector. Medical Cube data shows that the total transaction amount related to China in the first half of 2025 was 60.8 billion US dollars, an increase of 129% year-on-year. In the first three quarters of this year, the total transaction amount related to China was 93.7 billion US dollars, an increase of 64% year-on-year. From the perspective of growth rate alone, the BD transactions of domestic innovative drugs began to cool down in the third quarter. In addition, the U.S. September employment report shows that the economy is resilient. Morgan Stanley has abandoned its previous prediction that the Federal Reserve will cut interest rates by 25 basis points at the December meeting. Morgan Stanley currently expects the Federal Reserve to cut interest rates in January, April, and June of 2026, lowering the policy rate target range to 3%-3.25%. Analysts point out that the expectation of a rate cut by the Federal Reserve may dampen the valuation of the innovative drug sector and overseas biopharmaceutical investment and financing.