Understanding the Market | CXO Concept Stocks Rebound in the Morning Overseas Easing Expected to Boost Investment and Financing Innovative Drug Support Policies Intensively Introduced

Concept stocks of CXOs rebounded in the morning session. As of the time of publication, JOINN rose by 10.73% to HKD 7.33; GenScript Biotech Corporation rose by 5.19% to HKD 9.53; Pharmaron rose by 5.13% to HKD 8.6; Tigermed rose by 4.56% to HKD 28.65. On the news front, on July 9th, Federal Reserve Chairman Powell's "dovish" remarks at the U.S. Congress hearing have raised market expectations for a Fed rate cut. Pacific Securities previously pointed out that as the Fed's rate hike cycle ends, gradually easing liquidity is expected to bring about a revival in investment and financing, with overseas demand improving before domestic demand. In addition, the "Implementation Plan to Support the Development of Innovative Drugs throughout the Entire Chain" was recently introduced. Dongwu Securities believes that specific terms are expected to be implemented in the near term. Coupled with the innovative drug sector being at a historically low level, multiple catalysts such as the ESMO conference, WCLC conference, medical insurance negotiations, and expectations for innovative drug internationalization in the second half of the year, the innovative drug sector is expected to strengthen