HK Stock Market Move | Concept stocks of CXOs leading the rise, Wuxi XDC (02268) up more than 8%, Wuxi Bio (02269) up more than 4%.

Concept stocks related to CXO are leading the gains, with WUXI XDC (02268) up 7.97% to HK$63, WUXI BIO (02269) up 4.7% to HK$40.08, WuXi AppTec (02359) up 2.28% to HK$19.7, and Pharmaron Beijing (03759) up 2.28% to HK$19.7. According to a research report released by Lyon, as AI technology continues to develop, investors' focus is shifting from AI-empowered industries to AI replacing intermediaries. The positive impact of AI on Contract Research, Development, and Manufacturing Organizations (CRDMOs) is becoming more apparent, while the impact on Contract Research Organizations (CROs) as pharmaceutical companies increasingly adopt AI internally may be mixed. Contract Development and Manufacturing Organizations (CDMOs) are currently more favored, as they are expected to outperform CROs with better production capacity lock-in and longer-term projects, leading to better profit visibility. The report also notes that the sector's decline on Thursday was not fundamentally driven, but likely due to position adjustments and fund flows. The current pullback is technical/short-term in nature, rather than attributable to deteriorating demand or execution capabilities. In a market window lacking catalysts, industry leaders may experience overselling, creating more attractive entry opportunities for investors with a 3 to 12-month investment horizon.