HK Stock Market Move | Most innovative drug concepts are on the rise, triggering a wave of repurchases in pharmaceutical companies. Institutions point out that innovative drugs will still be the core growth driver in the industry.

Most of the concept stocks of innovative drugs are on the rise. ZAI LAB (09688) rose by 6.42% to HK$14.43; GENSCRIPT BIO (01548) rose by 4.88% to HK$11.82; WuXi AppTec (02359) rose by 4.49% to HK$128; AKESO (09926) rose by 3.87% to HK$87.15; Jiangsu Hengrui Pharmaceuticals (01276) rose by 3.02% to HK$54.6. According to pharmaceutical Magic Cube, in the first quarter of 2026, the total amount of related transactions in China reached 61.4 billion US dollars, accounting for about 70% of the total global pharmaceutical transactions, surpassing the total for the whole year of 2024. In addition, the number and scale of repurchases by pharmaceutical companies have increased significantly since the beginning of 2026, with industry capital releasing signals of bullishness due to undervalued stock prices and bottomed valuations. It is reported that in the second quarter of this year alone, more than a hundred A-share or H-share listed pharmaceutical companies have disclosed repurchase or shareholding increase plans. Zhongtai points out that innovative drugs are showing better-than-expected performance in terms of BD transactions, data readouts, etc., and after being fully priced in by the short-term negative impact of anti-corruption policies and pessimistic expectations, they are expected to become a key sector of focus for high-position funds seeking undervalued stocks, strong policy support, and oversold defensive growth tracks. Huaxin Securities believes that looking ahead, innovative drugs will still be the core incremental growth driver of the industry, not only receiving continuous tilt and protection from domestic medical insurance expenditures, but also continuous support from a series of policy implementations.