Market Performance: The Hang Seng Index (HSI) rose by 244 points (0.9%) to 27,092, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw gains of 1.5% and 0.9%, respectively.

Active Heavyweights: Notable stock movements included Alibaba (BABA) increasing by 5.3% to $168.3, while Meituan (03690.HK) fell by 3% to $101.8. Tencent (00700.HK) and HKEX (00388.HK) also experienced gains.

Top Gainers: Ali Health (00241.HK) surged by 15.9% to $7.58, reaching a new high, while Haidilao (06862.HK) and Nongfu Spring (09633.HK) rose by 7.4% and 6.1%, respectively.

Significant Movements: Synagistics (02562.HK) saw a remarkable increase of 47.9%, while Dalipal Holding (01921.HK) experienced a significant drop of 12%. Other notable gainers included Q Tech (01478.HK) and AsiaInfo Tech (01675.HK) with increases of 13.5% and 11.1%.

US Stock Market Performance: US stocks fell 398 points (0.8%) following JPMorgan's earnings report, while chip stocks saw increased interest.

Hong Kong Market Opening: The Hong Kong stock market opened higher, with the HSI up 123 points (0.5%) and notable gains in tech stocks like BABA-W and TENCENT.

Inflation Rate in China: China's year-on-year inflation rate for December was reported at 0.8%, slightly above the previous 0.7% but below the forecast of 0.9%.

Pharmaceutical Sector Activity: Several pharmaceutical stocks, including HANSOH PHARMA and BEONE MEDICINES, opened higher, while TRANSTHERA-B experienced a decline after a share placement.

Market Performance: The NASDAQ Golden Dragon China Index rose over 4%, with Alibaba ADR leading the charge by climbing 10%, contributing to a strong opening for the Hong Kong bourse, which saw the HSI open 350 points higher and close the morning session up 268 points.

Technology Sector Movements: In the technology sector, notable stocks like BABA-W and ALI HEALTH saw gains of 3.5% and 3.3% respectively, while other major players like TENCENT and JD-SW also experienced slight increases, despite some stocks like MEITUAN-W and BIDU-SW declining.

Pharmaceutical Sector Highlights: The 44th JPMorgan Healthcare Conference commenced in San Francisco, with several Chinese pharmaceutical companies participating, leading to significant gains for stocks such as REMEGEN, which surged 11.6%, and CSPC PHARMA, which jumped 5.7% after its innovative drug application was accepted.

AI Concept Stocks Decline: Several AI concept stocks, including SENSETIME-W and WEIMOB INC, experienced declines ranging from 3.3% to 4.2%, while other stocks like KNOWLEDGE ATLAS and MINIMAX-WP saw even steeper drops of 8.8% and 7.5% respectively.

Stock Performance: 3SBIO, GUSHENGTANG, SINO BIOPHARM, and WUXI XDC all experienced positive stock price changes, with 3SBIO leading at +6.716%.

Short Selling Data: Significant short selling activity was noted, particularly for SINO BIOPHARM with a ratio of 12.457%, indicating investor caution.

Target Prices: Analysts have set target buy prices for the stocks, with 3SBIO at 37.58, GUSHENGTANG at 44.95, SINO BIOPHARM at 9.4, and WUXI XDC at 74.

Related News: Nomura reported that WUXI APPTEC exceeded expectations in its 4Q25 results, suggesting sustained growth momentum for the current year.

Performance of MSCI China Health Care Index: The MSCI China Health Care Index has increased by 11.8% year-to-date, surpassing the MSCI China Index's growth of 9.1%, as reported by CMBI.

Factors Driving Pharmaceutical Growth: The rise in the pharmaceutical sector is attributed to a valuation adjustment in Q4 2025 and increased interest from institutional investors at the start of the year.

Future Outlook for Innovative Drugs: The trend of innovative drug exports is anticipated to persist into 2026, with clinical advancements and overseas pipeline data being crucial for growth.

CMBI Ratings on Pharmaceutical Stocks: CMBI has assigned "Buy" ratings to several pharmaceutical companies, including 3SBIO, GUSHENGTANG, WUXI XDC, and SINO BIOPHARM, with detailed ratings and target prices available in a separate table.