JPM Identifies CN Healthcare Sector Decline as Buying Opportunity, Increases Price Targets for INNOVENT BIO and WUXI XDC
Market Overview: JPMorgan's report indicates that the Chinese healthcare sector has seen a retreat due to price negotiations and profit-taking, but the fundamentals remain strong, presenting a buying opportunity for 2026.
Stock Recommendations: The broker favors biotechnology and CXO sectors, highlighting top picks such as INNOVENT BIO, SKB BIO-B, WUXI APPTEC, and WUXI XDC, along with a positive outlook for MEDBOT-B in medical technology.
Target Price Adjustments: JPMorgan has adjusted target prices for several stocks, lowering AKESO's target from HKD166 to HKD149 while maintaining an Overweight rating, and slightly increasing INNOVENT BIO's target from HKD110 to HKD111.
Performance Metrics: The report includes short selling data for the highlighted stocks, indicating varying levels of short interest, with WUXI APPTEC and WUXI XDC showing significant short selling ratios.
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<Research>HSBC Identifies Hong Kong Stocks Receiving the Most Institutional Interest (Table)
Stock Performance Overview: Various stocks including AIA, Alibaba, and BYD showed mixed performance with AIA and Alibaba experiencing gains, while SMIC saw a decline.
Short Selling Data: Significant short selling activity was noted across multiple stocks, with BYD and SHK PPT having the highest short selling ratios at 34.941% and 35.602%, respectively.
Investment Ratings: Analysts have given "Buy" ratings to several companies including Alibaba, BOC Hong Kong, and Trip.com, while AIA is rated as "Hold."
Market Insights: JPMorgan estimates Alibaba's T-Head valuation to be between US$25-62 billion, indicating that a spinoff and separate listing is unlikely this year.
Guosen Securities Reveals Top 10 HK Stocks with Highest Foreign Capital Inflows and Outflows in Q4 2025 (Table)
Top Inflows: Guosen Securities reported the top ten Hong Kong stocks with the largest foreign capital inflows in 4Q25, led by INNOVENT BIO with an inflow of HKD6.43 billion.
Top Outflows: The report also highlighted the top ten stocks with the largest foreign capital outflows, with XIAOMI-W experiencing the highest outflow of HKD50.41 billion.
Short Selling Data: The report included short selling data for each stock, indicating significant short selling activity, particularly for XIAOMI-W and HSBC HOLDINGS.
Market Trends: The report reflects ongoing trends in the Hong Kong stock market, with notable shifts in foreign investment and short selling strategies among major companies.
<Full-day Summary> HSI Falls by 281 Points; HSTI Declines by 72 Points; BABA Drops More than 3%; SINOPEC CORP, LI NING, NEW WORLD DEV, NANSHAN AL INTL, and CHINA EAST AIR Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 281 points (1.0%) to close at 26,563, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines, with market turnover reaching $225.69 billion.
Active Heavyweights: Major stocks like Alibaba, Xiaomi, Meituan, Tencent, and Ping An saw declines, with Alibaba dropping 3.5% to $160.4 and Xiaomi down 1.7% to $36.48, amidst significant short selling activity.
Notable Movers: Sino Biopharma and Wuxi Biologics faced substantial losses, with declines of 6.2% and 4.8% respectively, while Sinopec Corp and Li Ning recorded gains, with Sinopec up 3.3% to $4.95.
High Volatility Stocks: Qunabox Group surged by 38.8% to $35, while Hao Tian International plummeted by 22.3% to $0.101, indicating significant volatility in smaller stocks within the market.
HSI Declines 265 Points at Midday as Certain AI and Pharma Stocks Drop; Power Equipment Stocks Rise
Market Overview: The HSI fell 1% to 26,579, with the HSCEI down 0.9% and the HSTECH decreasing by 1.1%, resulting in a total half-day turnover of $132.94 billion.
AI Stocks Performance: XTALPI saw a gain of 3.4%, while KINGSOFT CLOUD, INSILICO, GDS-SW, and UNISOUND experienced declines ranging from 2.7% to 5.6%.
Power Equipment Stocks: DONGFANG ELEC and HARBIN ELECTRIC both rose significantly, with increases of 6.6% and 7.3%, respectively, despite the overall market trend.
Pharmaceutical Sector Decline: Several pharmaceutical stocks, including SINO BIOPHARM and 3SBIO, faced declines of 4.6% to 6.1%, with WUXI APPTEC also dropping by 2.8%.
UBS: INNOVENT BIO (01801.HK) Upholds 2027 Sales Goal; Maintains Buy Rating
Investor Focus: During the 2026 Greater China Conference, investors concentrated on INNOVENT BIO's sales performance and R&D progress, particularly for its candidate IBI363 developed with Takeda Pharmaceutical.
Sales Confidence: INNOVENT BIO expressed confidence in achieving significant sales in 2025, targeting RMB20 billion in product sales by 2027, while also committing to advancing five candidates into global trials by 2030.
Market Analysis: UBS released a report rating INNOVENT BIO as a Buy, with a target price set at $137.4, reflecting optimism about the company's future performance.
Short Selling Data: The company experienced short selling of $231.31 million, with a short selling ratio of 19.38%, indicating some investor skepticism despite the positive outlook.
Innovent's OLN324 Clinical Trial Shows Significant Superiority Over Market Leader
- Clinical Trial Success: Innovent's partner Ollin reported that OLN324 demonstrated up to 60-fold higher anti-Ang2 potency in the JADE trial involving over 160 patients, establishing it as a potential first-line treatment for diabetic macular edema, which could reshape the market landscape.
- Retinal Drying Improvement: Patients treated with OLN324 4mg experienced approximately 75% greater retinal drying improvement at Week 1 compared to faricimab, indicating a significant therapeutic advantage that may lead to broader applications in ophthalmology.
- Significant Market Potential: The success of OLN324 positions it to capture a substantial share of the ~$15 billion global retinal therapeutics market, further solidifying Innovent's leadership in the biopharmaceutical sector.
- Future Development Plans: Ollin plans to present the JADE study results at the upcoming J.P. Morgan Healthcare Conference and aims to expedite OLN324 into global Phase 3 trials, reflecting strong confidence in the drug's future market prospects.
<Research>HSBC Identifies Hong Kong Stocks Receiving the Most Institutional Interest (Table)
Stock Performance Overview: Various stocks including AIA, Alibaba, and BYD showed mixed performance with AIA and Alibaba experiencing gains, while SMIC saw a decline.
Short Selling Data: Significant short selling activity was noted across multiple stocks, with BYD and SHK PPT having the highest short selling ratios at 34.941% and 35.602%, respectively.
Investment Ratings: Analysts have given "Buy" ratings to several companies including Alibaba, BOC Hong Kong, and Trip.com, while AIA is rated as "Hold."
Market Insights: JPMorgan estimates Alibaba's T-Head valuation to be between US$25-62 billion, indicating that a spinoff and separate listing is unlikely this year.
Guosen Securities Reveals Top 10 HK Stocks with Highest Foreign Capital Inflows and Outflows in Q4 2025 (Table)
Top Inflows: Guosen Securities reported the top ten Hong Kong stocks with the largest foreign capital inflows in 4Q25, led by INNOVENT BIO with an inflow of HKD6.43 billion.
Top Outflows: The report also highlighted the top ten stocks with the largest foreign capital outflows, with XIAOMI-W experiencing the highest outflow of HKD50.41 billion.
Short Selling Data: The report included short selling data for each stock, indicating significant short selling activity, particularly for XIAOMI-W and HSBC HOLDINGS.
Market Trends: The report reflects ongoing trends in the Hong Kong stock market, with notable shifts in foreign investment and short selling strategies among major companies.
<Full-day Summary> HSI Falls by 281 Points; HSTI Declines by 72 Points; BABA Drops More than 3%; SINOPEC CORP, LI NING, NEW WORLD DEV, NANSHAN AL INTL, and CHINA EAST AIR Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 281 points (1.0%) to close at 26,563, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines, with market turnover reaching $225.69 billion.
Active Heavyweights: Major stocks like Alibaba, Xiaomi, Meituan, Tencent, and Ping An saw declines, with Alibaba dropping 3.5% to $160.4 and Xiaomi down 1.7% to $36.48, amidst significant short selling activity.
Notable Movers: Sino Biopharma and Wuxi Biologics faced substantial losses, with declines of 6.2% and 4.8% respectively, while Sinopec Corp and Li Ning recorded gains, with Sinopec up 3.3% to $4.95.
High Volatility Stocks: Qunabox Group surged by 38.8% to $35, while Hao Tian International plummeted by 22.3% to $0.101, indicating significant volatility in smaller stocks within the market.
HSI Declines 265 Points at Midday as Certain AI and Pharma Stocks Drop; Power Equipment Stocks Rise
Market Overview: The HSI fell 1% to 26,579, with the HSCEI down 0.9% and the HSTECH decreasing by 1.1%, resulting in a total half-day turnover of $132.94 billion.
AI Stocks Performance: XTALPI saw a gain of 3.4%, while KINGSOFT CLOUD, INSILICO, GDS-SW, and UNISOUND experienced declines ranging from 2.7% to 5.6%.
Power Equipment Stocks: DONGFANG ELEC and HARBIN ELECTRIC both rose significantly, with increases of 6.6% and 7.3%, respectively, despite the overall market trend.
Pharmaceutical Sector Decline: Several pharmaceutical stocks, including SINO BIOPHARM and 3SBIO, faced declines of 4.6% to 6.1%, with WUXI APPTEC also dropping by 2.8%.
UBS: INNOVENT BIO (01801.HK) Upholds 2027 Sales Goal; Maintains Buy Rating
Investor Focus: During the 2026 Greater China Conference, investors concentrated on INNOVENT BIO's sales performance and R&D progress, particularly for its candidate IBI363 developed with Takeda Pharmaceutical.
Sales Confidence: INNOVENT BIO expressed confidence in achieving significant sales in 2025, targeting RMB20 billion in product sales by 2027, while also committing to advancing five candidates into global trials by 2030.
Market Analysis: UBS released a report rating INNOVENT BIO as a Buy, with a target price set at $137.4, reflecting optimism about the company's future performance.
Short Selling Data: The company experienced short selling of $231.31 million, with a short selling ratio of 19.38%, indicating some investor skepticism despite the positive outlook.
Innovent's OLN324 Clinical Trial Shows Significant Superiority Over Market Leader
- Clinical Trial Success: Innovent's partner Ollin reported that OLN324 demonstrated up to 60-fold higher anti-Ang2 potency in the JADE trial involving over 160 patients, establishing it as a potential first-line treatment for diabetic macular edema, which could reshape the market landscape.
- Retinal Drying Improvement: Patients treated with OLN324 4mg experienced approximately 75% greater retinal drying improvement at Week 1 compared to faricimab, indicating a significant therapeutic advantage that may lead to broader applications in ophthalmology.
- Significant Market Potential: The success of OLN324 positions it to capture a substantial share of the ~$15 billion global retinal therapeutics market, further solidifying Innovent's leadership in the biopharmaceutical sector.
- Future Development Plans: Ollin plans to present the JADE study results at the upcoming J.P. Morgan Healthcare Conference and aims to expedite OLN324 into global Phase 3 trials, reflecting strong confidence in the drug's future market prospects.
