Lates News

CICC published a report stating that, since September, domestic institutions' proportion of holdings through the Stock Connect program has remained stable, while foreign institutions' holdings in Hong Kong healthcare stocks have slightly decreased since the middle of the year. This week, domestic institutions increased their holdings in leading and innovative pharmaceutical companies, while foreign institutions increased their holdings in high cost-effective CXO companies. They reduced their holdings in innovative targets that domestic institutions were adding to. After a general rise in the innovative pharmaceutical sector, it is recommended to gradually enter the market during a decline and focus on the following specific directions: Three Stone Pharmaceuticals and Deqi Pharmaceuticals have rich short-term catalysts and their valuations still do not reflect the value of their core products. SinocellTech, Hutchison Pharma, and Legend Biotech are significantly undervalued with clear long-term growth prospects. In the CXO sector, leading downstream companies, such as Pharmaron, benefit from a strong business environment and marginally improved financing conditions.