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Accelerating recovery? In March, domestic Innovative Drugs investment and financing increased by about 50% year-on-year, and the Hong Kong Stock pharmaceutical Sector collectively surged.
① In March, domestic investment and financing for Innovative Drugs increased by approximately fifty percent year-on-year, how significant is the Bullish impact? ② The Hong Kong stock market's pharmaceutical Sector rose collectively, which stocks are attracting market attention?
Hong Kong stocks in the pharmaceutical sector soared! Kai Medical surged more than 22%. Institutions claim that tariffs have "no impact" on the wave of Innovative Drugs going abroad.
① How do government policy support and the overseas expansion of Innovative Drugs become a new growth engine for Hong Kong stock pharmaceutical companies? ② Why does Zhongtai International believe that tariffs have limited impact on Innovative Drug companies?
Has the SSE Health Care theme Index risen again? This year, the public fund performance has shuffled, with the highest return of the health care theme Fund exceeding 44%, and Inflow of capital has accelerated.
As of April 16, two SSE Health Care theme Index Funds have entered the top 10 performances of actively managed equity funds this year; Since April, multiple Hwabao WP CSI Medical Service ETFs have seen significant net subscriptions, with the total amount of fund shares for these medical ETFs reaching a new high; Fund managers believe that the pharmaceutical sector is not just undervalued in parts, but is comprehensively undervalued, and the nature of Innovative Drugs has changed.
Brokerage morning meeting highlights: The current rare earth Sector is well-prepared for both offense and defense, it is recommended to pay active attention.
In today's Brokerage morning meeting, China Securities Co.,Ltd. proposed that the current Rare Earth Sector has both offensive and defensive capabilities, suggesting active attention; HTSC indicated that the AI Medical industry trend is accelerating; China International Capital Corporation believes that the total telecom capital expenditure will be under pressure in 2025, focusing on structural growth opportunities such as computing power and 5G-A.
Caitong: Innovative Drugs and Medical Devices remain an important main line in this round of the bull market in the Medical industry.
The country is likely to accelerate the introduction of policies to encourage expanded domestic demand, which is Bullish for the sectors focused on domestic consumption, including Traditional Chinese Medicine, Medical Services, Internet medicine and pharmacies, medical aesthetics, etc., as an extension of the Health China logic.
Tariffs Loom as US Investigates Drug and Chip Imports
Sinolink: Innovative Drugs will be the main growth line in the Pharmaceutical Sector, bringing investment opportunities for left-side sector stocks after the Q1 report.
The reversal of market conditions and improvement in performance after the quarterly report will also bring investment opportunities in individual stocks in sectors such as chain pharmacies, Medical Devices, CXO, generic drugs, Traditional Chinese Medicine, and Medical Services, and it is recommended to increase investment.
Brokerage morning meeting highlights: The short-term bottom of the A-shares has already formed, looking for structural opportunities amid fluctuations.
At today's Brokerage morning meeting, Everbright believes that the market may mainly feature structural trends and hot sector rotations; Sinolink stated that they remain Bullish on the growth potential of Innovative Drugs companies in the Hong Kong and A shares markets; Galaxy Securities indicated that a short-term bottom in A shares has already formed and is seeking structural opportunities amidst the fluctuations.
Prelude to increased tariffs? The Trump administration has initiated a Section 232 investigation into pharmaceuticals and Semiconductors.
① The USA government disclosed on Monday that it has launched an investigation into the impact of imported Pharmaceuticals and Semiconductors on National Security; ② This is widely seen as a prelude to imposing tariffs on prescription drugs and Semiconductors, and it could further escalate the trade war initiated by the USA.
AI replacing animal experiments? A message from the FDA has left "monkey breeders" feeling devastated, and experts state that "we are still far from the stage of implementation."
① The news that the USA FDA has publicly stated it will gradually replace animal testing requirements has led to an increase in the stock prices of AI pharmaceutical companies, impacting traditional drug evaluation CRO companies; ② Some believe this action represents a trend in Industry development. However, others believe that it is far from being implementable.
What is the impact on the domestic Pharmaceutical industry? Many listed companies respond to the USA's tariff on Pharmaceutical.
① Most surveyed listed Pharmaceutical companies are not panicking. Some companies state that if Pharmaceutical tariffs are implemented, they will raise prices to ensure product gross margin; ② Other companies mention that their products are difficult to substitute in the U.S. and are closely monitoring related developments; ③ Industry experts state that if Pharmaceutical tariffs are implemented, compared to Active Pharmaceutical Ingredients and generic drugs, Innovative Drugs may be the least impacted.
China Securities Co.,Ltd.: It is recommended to focus on the new growth and integration opportunities in the Industry.
China Securities Co.,Ltd. remains bullish on high-quality Innovative Drugs companies in 2025 and actively focuses on cutting-edge technologies in pharmaceuticals and medical devices.
Semiconductors rise in adversity, Innovative Drugs make significant strides overseas, and Star companies work together to cope with external shocks.
① The increase in tariffs impacts the global business order, and companies on the Star are responding to challenges with their own innovations, becoming an important force in promoting Technology self-reliance and strength; ② Industry insiders point out that changes in overseas trade policies will force China's high-end manufacturing sector to further enhance its Technology innovation level, Industry Chain resilience, and globalization capabilities, thereby maintaining strategic determination and competitive advantage amidst tariff impacts, and accumulating energy for China to gain initiative in international competition.
Brokerage morning meeting highlights: The USA has increased tariffs on China, but the impact on these industries in the A-shares may be limited.
In today's brokerage morning meeting, GF SEC believes that the USA's tariffs on China have a limited impact on the A-share Computer Industry; China Securities Co.,Ltd. suggested being Bullish on the Innovative Drugs industry that is currently not affected by tariffs; Galaxy Securities stated that Deep Sea Technology has entered a new stage in Global Strategy, focusing on opportunities in core equipment.
Zhongtai: Innovative Drugs lead the market, pay attention to Q1 performance + policy catalysis.
In April, the pharmaceutical Sector is expected to continue its structural market trend, with Innovative Drugs as the main line and thematic opportunities rotating.
The entire pharmaceutical sector has surged sharply; what happened?
On Monday, all AH Stocks in the pharmaceutical Sector surged, with innovative drugs performing the strongest. The Yinhua CSI Innovative Drugs Industry ETF collectively rose sharply, driven by three main factors: the relaxation of collective procurement, overseas license authorizations, and improvement in Earnings Reports that will reshape the Industry landscape.
Overseas expansion is continuously being catalyzed, and the pharmaceutical stock market is gradually heating up. Institutions: China's "R&D premium" is being recognized globally.
① As of the time of writing, the Hang Seng Innovative Drugs Index has risen over 6%, with many Biomedical stocks in the A-share market hitting the ceiling limit. ② GTJA emphasizes that the centralized procurement rules are expected to be optimized, promoting marginal improvements in the pharmaceutical Sector. ③ Soochow believes that overseas buyers' attention to China's first in class opportunities has significantly increased.
The "wind" has reached the pharmaceutical stocks, and the Sector is experiencing a surge in limit-up prices! What are the Bullish catalysts?
Catalysts from news, warming performance, and the advantages of valuation may become the main factors boosting the rise of pharmaceutical stocks.
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