HK Stock Market Move | Pharmaceutical stocks rise again as the National Medical Products Administration further optimizes evaluation and approval. Institutions are optimistic about the multiple catalysts for innovative drugs.

Medical stocks are rising again. As of the time of publication, JACOBIO-B (01167) rose by 8.71% to 7.24 Hong Kong dollars; HBM HOLDINGS-B (02142) rose by 7.61% to 14.28 Hong Kong dollars; HENLIUS (02696) rose by 5.25% to 67.2 Hong Kong dollars; DUALITYBIO-B (09606) rose by 4.88% to 365.6 Hong Kong dollars. On the news front, on January 7th, it was learned from the National Medical Products Administration that in order to accelerate the listing of urgently needed overseas drugs in clinical practice in China, the administration is further optimizing the evaluation and approval process for these drugs. The NMPA stated that it will adhere to clinical value orientation, encourage applicants to conduct global R&D and simultaneous listing applications in China, and encourage urgently needed overseas original and generic drugs to be listed in China. Those meeting the requirements can be included in the priority evaluation and approval range. Huatai believes that the valuation of Hong Kong innovative drugs is still attractive compared to similar products globally, with liquidity discounts being the main reason for the decline in innovative drugs in November and December. With liquidity restoration, continued external BD, as well as the arrival of JPM summit, annual report season, and peak data disclosure, the firm believes that the liquidity restoration since the beginning of the year is expected to boost the beta of the innovative drug sector, and the upward trend is expected to continue.