CMBI Anticipates Recovery in Second Half Results for CXO Companies, Preferring SINO BIOPHARM and WUXI XDC
Healthcare Index Performance: The MSCI China Healthcare Index has increased by 59.5% year-to-date, outperforming the MSCI China Index by 24%, despite a recent 10% correction in the pharmaceutical sector since early October.
Stock Recommendations: CMBI remains optimistic about several stocks, including 3SBIO, GUSHENGTANG, GIANT BIOGENE, WUXI XDC, INNOVENT BIO, and SINO BIOPHARM, all rated as Buy despite varying short selling ratios.
Market Recovery Outlook: CMBI predicts a recovery in CXO companies' results by the second half of 2025, driven by improved capital market financing, increased overseas transactions for innovative drugs, and a rebound in domestic demand.
Catalysts for Growth: The clinical development of innovative drug pipelines overseas is expected to be a significant catalyst for growth in the innovative drug sector.
Trade with 70% Backtested Accuracy
Analyst Views on 01177
About the author
UOB Kay Hian Supports ALI HEALTH and PA GOODDOCTOR as AI Innovations and National Policies Propel China's Internet Healthcare Industry
Chinese Internet Healthcare Sector Growth: The sector is evolving with increased AI innovation from tech giants and support from national policies, such as Beijing's online consultation pilot program, despite profitability challenges.
Stock Recommendations: UOB Kay Hian maintains a positive outlook on companies like ALI HEALTH and PA GOODDOCTOR, projecting significant revenue growth driven by AI and synergies with major partners.
Top Picks in Healthcare: UOB Kay Hian's top stock picks include BEONE MEDICINES, INNOVENT BIO, and HANSOH PHARMA, highlighting their potential for growth in the Chinese healthcare market.
Investment Ratings: Various companies in the sector have received investment ratings, with several being rated as "Buy," indicating strong confidence in their future performance.
<Daily Summary> HSI Ends at 27,032, Dropping 233 Points; HSTI Finishes at 5,408, Decreasing by 91 Points; MEITUAN Falls More Than 4%; WUXI APPTEC, SHK PPT, SINOPEC CORP, CHINA RES MIXC, HK & CHINA GAS Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 233 points (0.9%) to close at 27,032, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.
Active Heavyweights: Major stocks like Meituan, Tencent, and Xiaomi saw significant drops, with Meituan down 4.5% and Tencent down 2.3%, amidst high short selling activity.
Notable Movers: Bud APAC and Lenovo Group faced substantial losses, with Bud APAC down 5.2%, while Zijin Mining and PICC P&C were among the few gainers, with Zijin Mining up 3.4%.
High Performers: Unisound and Guofuhee experienced remarkable gains, with Unisound rising by 16.8%, indicating strong market interest in these stocks.
BofAS: SINO BIOPHARM (01177.HK) Demonstrates Positive Developments for Two Medications; Rating Maintained at Buy
Stock Performance: SINO BIOPHARM (01177.HK) experienced a decline of 3.514%, with a short selling amount of $17.59 million and a ratio of 21.159%.
Clinical Trials Update: The company has completed enrollment for Phase III clinical trials of two drugs, TQB2102 and LM302, with LM302 being the first CLDN18.2 antibody-drug conjugate to reach this stage.
Brokerage Rating: BofA Securities has reiterated a Buy rating for SINO BIOPHARM, setting a target price of $8.6 based on the potential of LM302 to provide new treatment options.
Market Information: Note that the HK stocks quote is delayed by at least 15 minutes, and the short selling data is current as of February 12, 2026.
HSI Gains 146 Points at Midday; AI and Pharmaceutical Stocks Surge; KNOWLEDGE ATLAS Jumps 21%
Market Performance: The HSI rose 146 points (0.5%) to 27,173, while the HSCEI and HSTECH also saw gains, with total market turnover reaching HKD133.823 billion.
Tech Stock Movements: Major tech stocks like TENCENT and MEITUAN fell, while others like KUAISHOU and JD-SW experienced gains, indicating mixed performance in the tech sector.
AI and Chip Sector Trends: AI stocks remained in demand, with significant gains for companies like KNOWLEDGE ATLAS and MINIMAX-WP, while chip stocks showed varied results, with SMIC edging up and HUA HONG SEMI dipping.
Pharmaceutical Sector Gains: Drug manufacturers like CSPC PHARMA and INNOVENT BIO saw notable increases in their stock prices, reflecting positive momentum in the pharmaceutical industry.
Midday Update: HSI Ends at 27,173, Gaining 146 Points; HSTI Reaches 5,463, Up 45 Points; MEITUAN Falls Over 3%; YUM CHINA, BOC HONG KONG, HSBC HOLDINGS, DAHSING BANKING, and KB LAMINATES Achieve New Highs
Market Performance: The Hang Seng Index (HSI) rose by 146 points (0.5%) to 27,173, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw gains of 45 points (0.8%) and 71 points (0.8%) respectively.
Active Heavyweights: Notable movements included Meituan down 3% to $88.3, Xiaomi up 2% to $35.92, Alibaba up 1.5% to $160.2, and Tencent down 1.1% to $554.
Top Gainers: CSPC Pharma, Wuxi Biologics, and Innovent Biologics were among the top gainers, with increases of 6.3%, 5.6%, and 5.3% respectively, while New Oriental fell by 4.7%.
Significant Moves in Other Stocks: China Literature surged by 15.6%, Vobile Group increased by 13.3%, and Dahsing Banking rose by 7.4%, all hitting new highs, indicating strong market activity in various sectors.
HSI Drops 580 Points as Commodity Stocks Decline; CSPC Pharma and CKH Holdings Weigh Down Index
Hong Kong Stock Market Decline: Hong Kong stocks experienced a significant decline, with the HSI dropping 580 points (2.08%) to close at 27,387, while the HSCEI and HSTECH also fell by 2.5% and 2.1%, respectively, amid a total market turnover of $301.612 billion.
Gold and Resource Stocks Performance: Spot gold prices fell over 5%, impacting several gold mining stocks, which tumbled between 10-14%. Resource stocks like Jiangxi Copper and MMG also saw declines of 9-10%, with Jiangxi Copper's short selling ratio reaching 28.3%.
Pharmaceutical Sector Developments: CSPC Pharma's stock dropped 10.2% despite a partnership with AstraZeneca for innovative medicines, involving an upfront payment exceeding $9.3 billion. Other pharma stocks also faced declines ranging from 3.3% to 4.9%.
Corporate News and Market Rumors: CKH Holdings fell 4.6% following a court ruling on port contracts, while New World Development's share price rose 2.2% amid rumors of a potential change in ownership involving Blackstone.
UOB Kay Hian Supports ALI HEALTH and PA GOODDOCTOR as AI Innovations and National Policies Propel China's Internet Healthcare Industry
Chinese Internet Healthcare Sector Growth: The sector is evolving with increased AI innovation from tech giants and support from national policies, such as Beijing's online consultation pilot program, despite profitability challenges.
Stock Recommendations: UOB Kay Hian maintains a positive outlook on companies like ALI HEALTH and PA GOODDOCTOR, projecting significant revenue growth driven by AI and synergies with major partners.
Top Picks in Healthcare: UOB Kay Hian's top stock picks include BEONE MEDICINES, INNOVENT BIO, and HANSOH PHARMA, highlighting their potential for growth in the Chinese healthcare market.
Investment Ratings: Various companies in the sector have received investment ratings, with several being rated as "Buy," indicating strong confidence in their future performance.
<Daily Summary> HSI Ends at 27,032, Dropping 233 Points; HSTI Finishes at 5,408, Decreasing by 91 Points; MEITUAN Falls More Than 4%; WUXI APPTEC, SHK PPT, SINOPEC CORP, CHINA RES MIXC, HK & CHINA GAS Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 233 points (0.9%) to close at 27,032, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.
Active Heavyweights: Major stocks like Meituan, Tencent, and Xiaomi saw significant drops, with Meituan down 4.5% and Tencent down 2.3%, amidst high short selling activity.
Notable Movers: Bud APAC and Lenovo Group faced substantial losses, with Bud APAC down 5.2%, while Zijin Mining and PICC P&C were among the few gainers, with Zijin Mining up 3.4%.
High Performers: Unisound and Guofuhee experienced remarkable gains, with Unisound rising by 16.8%, indicating strong market interest in these stocks.
BofAS: SINO BIOPHARM (01177.HK) Demonstrates Positive Developments for Two Medications; Rating Maintained at Buy
Stock Performance: SINO BIOPHARM (01177.HK) experienced a decline of 3.514%, with a short selling amount of $17.59 million and a ratio of 21.159%.
Clinical Trials Update: The company has completed enrollment for Phase III clinical trials of two drugs, TQB2102 and LM302, with LM302 being the first CLDN18.2 antibody-drug conjugate to reach this stage.
Brokerage Rating: BofA Securities has reiterated a Buy rating for SINO BIOPHARM, setting a target price of $8.6 based on the potential of LM302 to provide new treatment options.
Market Information: Note that the HK stocks quote is delayed by at least 15 minutes, and the short selling data is current as of February 12, 2026.
HSI Gains 146 Points at Midday; AI and Pharmaceutical Stocks Surge; KNOWLEDGE ATLAS Jumps 21%
Market Performance: The HSI rose 146 points (0.5%) to 27,173, while the HSCEI and HSTECH also saw gains, with total market turnover reaching HKD133.823 billion.
Tech Stock Movements: Major tech stocks like TENCENT and MEITUAN fell, while others like KUAISHOU and JD-SW experienced gains, indicating mixed performance in the tech sector.
AI and Chip Sector Trends: AI stocks remained in demand, with significant gains for companies like KNOWLEDGE ATLAS and MINIMAX-WP, while chip stocks showed varied results, with SMIC edging up and HUA HONG SEMI dipping.
Pharmaceutical Sector Gains: Drug manufacturers like CSPC PHARMA and INNOVENT BIO saw notable increases in their stock prices, reflecting positive momentum in the pharmaceutical industry.
Midday Update: HSI Ends at 27,173, Gaining 146 Points; HSTI Reaches 5,463, Up 45 Points; MEITUAN Falls Over 3%; YUM CHINA, BOC HONG KONG, HSBC HOLDINGS, DAHSING BANKING, and KB LAMINATES Achieve New Highs
Market Performance: The Hang Seng Index (HSI) rose by 146 points (0.5%) to 27,173, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw gains of 45 points (0.8%) and 71 points (0.8%) respectively.
Active Heavyweights: Notable movements included Meituan down 3% to $88.3, Xiaomi up 2% to $35.92, Alibaba up 1.5% to $160.2, and Tencent down 1.1% to $554.
Top Gainers: CSPC Pharma, Wuxi Biologics, and Innovent Biologics were among the top gainers, with increases of 6.3%, 5.6%, and 5.3% respectively, while New Oriental fell by 4.7%.
Significant Moves in Other Stocks: China Literature surged by 15.6%, Vobile Group increased by 13.3%, and Dahsing Banking rose by 7.4%, all hitting new highs, indicating strong market activity in various sectors.
HSI Drops 580 Points as Commodity Stocks Decline; CSPC Pharma and CKH Holdings Weigh Down Index
Hong Kong Stock Market Decline: Hong Kong stocks experienced a significant decline, with the HSI dropping 580 points (2.08%) to close at 27,387, while the HSCEI and HSTECH also fell by 2.5% and 2.1%, respectively, amid a total market turnover of $301.612 billion.
Gold and Resource Stocks Performance: Spot gold prices fell over 5%, impacting several gold mining stocks, which tumbled between 10-14%. Resource stocks like Jiangxi Copper and MMG also saw declines of 9-10%, with Jiangxi Copper's short selling ratio reaching 28.3%.
Pharmaceutical Sector Developments: CSPC Pharma's stock dropped 10.2% despite a partnership with AstraZeneca for innovative medicines, involving an upfront payment exceeding $9.3 billion. Other pharma stocks also faced declines ranging from 3.3% to 4.9%.
Corporate News and Market Rumors: CKH Holdings fell 4.6% following a court ruling on port contracts, while New World Development's share price rose 2.2% amid rumors of a potential change in ownership involving Blackstone.
