00867 Overview

• Launch of Ruxolitinib Cream: CMS has launched Ruxolitinib cream in China, the first approved targeted drug for treating vitiligo, specifically for patients over 12 years old.

• Sales Projections: HSBC Global Research anticipates Ruxolitinib's sales to reach RMB500 million in 2026, doubling in 2027, and has upgraded its target price for CMS from $16.8 to $17.

• Market Potential: The drug targets approximately 8.2 million patients in China, with global sales of its oral and cream versions projected to reach US$2.8 billion and US$500 million respectively in 2024.

• Efficacy and Growth: Ruxolitinib has demonstrated strong efficacy, with expected year-on-year growth rates of 8% for oral and 50% for cream versions.

Market Overview

• HSI Performance: The Hang Seng Index (HSI) surged by 539 points, or 2.2%, closing at 25,617. The Hang Seng China Enterprises Index (HSCEI) rose by 174 points, or 1.9%, finishing at 9,121, while the Hang Seng Tech Index (HSTECH) increased by 124 points, or 2.2%, to close at 5,798.
• Market Turnover: The total market turnover for the day reached approximately $380.231 billion.

Notable Stock Movements

• Alibaba (BABA-W): Shares soared by 18.5% to close at $137.1, despite a 14% drop in adjusted EBITA for the first fiscal quarter. The company announced plans to develop a new AI chip, with a turnover of $54.9 billion.
• Hua Hong Semiconductor: The stock fell by 3.2% after initially rising 6.3%, following news of plans to acquire a 97.5% stake in Shanghai Huali Microelectronics.
• SMIC: Shares increased by 4.9% after a rally of 8.2%, driven by plans to acquire a 49% stake in Semiconductor Manufacturing North China (Beijing) Corporation, although its A-shares were suspended.
• BYD Electronic: The stock rose by 7.1% after reporting a 14% year-on-year increase in interim net profit.

Pharmaceutical Sector Highlights

• Fosun Pharma and CSPC Pharma: Both companies saw significant gains, with Fosun Pharma up 9.8% and CSPC Pharma up 9.1%.
• Innovent Bio and Wuxi Biologics: Innovent Bio surged by 8.8%, while Wuxi Biologics increased by 8.4%. Other notable gains included Wuxi AppTec and Pharmaron, which rose by 7.5% and 7%, respectively.

Commodities and Mining Stocks

• Gold and Silver Futures: New York gold futures rose to $3,500, leading to significant gains in gold mining stocks. Chinagold International spiked by 11.3%, while Zhaojin Mining and Lingbao Gold rose by 9% and 8.2%, respectively. Silver futures surpassed $40, boosting Chi Silver GP by 12.8%.
• Other Mining Stocks: MMG, CMOC, and Jiangxi Copper saw increases between 4.5% and 6.7%. Despite a 15% decline in interim net profit, China Shenhua's stock rose by 2.4%. Yankuang Energy reported a 39% drop in interim net profit but still saw a 3.6% increase in stock price.

Short Selling Insights

• Short Selling Data: Notable short selling figures included Alibaba at $6.46 billion with a ratio of 11.771%, Hua Hong Semiconductor at $894.25 million with a ratio of 14.453%, and BYD Electronic at $664.46 million with a ratio of 16.285%.

This detailed overview captures the significant movements and trends in the Hong Kong stock market, highlighting key players and their performance metrics.

• Pharma Companies Performance: Three Chinese pharmaceutical companies, SINO BIOPHARM, HANSOH PHARMA, and CMS, reported strong results for the first half of 2025, achieving double-digit revenue growth.

• Future Growth Projections: CLSA forecasts that the positive momentum will continue into the second half of 2025, driven by new drug launches, increased sales, favorable healthcare spending, and potential business development revenue.

• Broker Ratings and Target Prices: CLSA maintained an Outperform rating for SINO BIOPHARM with a target price of HKD9.2, while also raising target prices for HANSOH PHARMA from HKD27.8 to HKD43.1 and for CMS from HKD10 to HKD15.6.

• Short Selling Data: As of August 20, 2025, short selling figures indicate significant activity in these stocks, with HANSOH PHARMA having the highest short selling ratio at 45.051%.

• Market Performance: The HSI closed down 249 points (1%) at 25,220, with increased market turnover of HKD312.687 billion; several major stocks like JD-SW and BABA-W saw significant declines due to disappointing earnings reports.

• Stock Movements: Notable gains were observed in JD HEALTH (+11.7%) and PA GOODDOCTOR (+8.1%), while other tech and pharma stocks also experienced mixed performances, reflecting varied investor sentiment across sectors.

• Positive Outlook for China's Healthcare Sector: CLSA reports that the liquidity and fundamentals of China's healthcare industry are improving, with expectations for better prospects in the second half of 2025 due to weak US employment data and anticipated monetary easing.

• Stock Recommendations: The broker favors leading large pharmaceutical companies while advising caution towards those heavily reliant on biosimilars, recommending stocks like CSPC PHARMA and HANSOH PHARMA.