Hong Kong Stock Market Update | WUXI BIO rises over 4%, leading the CRO concept. Overseas CRO order indicators improve while domestic demand is still bottoming out.

CRO concept stocks rose in early trading. As of the time of writing, WUXI BIO was up 4.17% at HKD 27.45; TIGERMED was up 2.57% at HKD 31.95; GENSCRIPT BIO was up 1.83% at HKD 17.78; WUXI APPTEC was up 1.66% at HKD 73.6. On the news front, Guotai Junan Securities pointed out that the overall demand for CXO's overseas market is stable. Due to the more mature development of the overseas innovative drug industry, the transmission path of "macro factors → biopharmaceutical technology stock performance → investment and financing → CXO performance" is faster. The improvement of overseas CRO order indicators in Q3 2023 has been driven by the warming of overseas financing. The bank also pointed out that domestic demand is still bottoming out. Against the backdrop of the increasingly mature policy framework for innovative drugs and breakthroughs in overseas expansion, high-quality supply is the key factor determining domestic biotech financing outside of macro factors. In the process of establishing a turning point in demand, the warming of macro factors, improvement in Sino-US relations, and acceleration of domestic downstream industry upgrades are expected to catalyze the release of market optimism, and CXO's stock price is expected to react in advance.