ZAI LAB's Current Performance: ZAI LAB is experiencing challenges that have impacted its recent performance, with a stock price decline of approximately 27% since November 6.

Long-term Growth Potential: Despite current headwinds, UBS remains optimistic about ZAI LAB's long-term growth potential, particularly regarding its key assets like Zoci and ZL-1503.

Attractive Risk-Reward Ratio: UBS believes that the development and expansion potential of ZAI LAB's products are not yet reflected in its stock price, making the risk-reward ratio attractive.

Rating and Target Price Adjustment: UBS has reiterated a Buy rating for ZAI LAB while lowering its target price from HKD33.5 to HKD20.1.

UBS China Market Strategy Report: UBS has released a report highlighting Buy-rated Chinese stocks with significant potential for earnings growth by FY26, focusing on Hong Kong-listed and ADR-listed companies.

Highlighted Stocks: The report includes stocks such as INNOCARE, CARSGEN-B, ZAI LAB, AKESO, and CANSINOBIO, along with their recent performance and short selling data.

Short Selling Data: The report provides short selling figures for the listed stocks, indicating varying levels of short interest, with ZAI LAB and AKESO showing higher short selling ratios.

Related Market Insights: Additional context is provided by Soochow Securities, which lists the top 10 Hong Kong stocks with the highest net buys and sells by southbound funds in the previous week.