Hong Kong Stock Market Update | Pharmaceutical stocks continue to decline, INNOVENT BIO falls more than 7%, global investment and financing in the pharmaceutical and healthcare sector still lacks significant improvement.

Pharmaceutical stocks continue to decline. As of the time of writing, INNOVENT BIO fell 6.97% to HKD 38.7, CUTIA-B fell 6.5% to HKD 7.62, FRONTAGE fell 4.07% to HKD 2.12, and KANGNOVA-B fell 3.58% to HKD 41.8. Pu Yin International believes that after experiencing a two-and-a-half-year decline cycle from 2H21-2023, the negative factors that have suppressed the valuation of the pharmaceutical sector are already fully reflected in the current stock prices. In addition, with the expectation that the Federal Reserve will begin to cut interest rates in 2024, the bank's outlook for the sector has become more optimistic compared to mid-year. It is recommended to focus on innovative drugs, innovative high-value consumables, and CXO, which have recently experienced significant corrections. As for pharmaceutical investment and financing, the bank pointed out that global pharmaceutical and health investment and financing in 2023 has not shown obvious improvement, but the overall situation has stabilized. According to data from Artery Orange, the total financing amount in the global biopharmaceutical, medical device, and digital health sectors from January to October 2023 still declined by 27% compared to the same period last year, and there is no obvious improvement yet. However, from the trend perspective, the global investment and financing amount has gradually stabilized.