Understanding the Market | Pharmaceutical Stocks Rise Again, Industry Investment and Financing Expected to Bottom Out and Recover, Innovative Drug Policies Release Positive Signals

Medical stocks are on the rise again. As of the time of publication, Coronavac BioTech-B rose by 9.07% to HKD 155.1; RedHill Biopharma rose by 4.63% to HKD 14.02; GenScript Biotech Corporation rose by 4.59% to HKD 10.02; and Nuocheng Jianhua rose by 4.57% to HKD 5.03. On the news front, the U.S. CPI in June slowed more than expected, with a nearly 90% probability of a rate cut in September. Pacific Securities 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 recent release of the "Full Chain Support Implementation Plan for the Development of Innovative Drugs" has sent positive signals. Dongwu Securities believes that specific terms are expected to be implemented soon. Coupled with the innovative drug sector being at a historically low level, the second half of the year will see multiple catalysts such as the ESMO conference, WCLC conference, medical insurance negotiations, and expectations for the overseas expansion of innovative drugs, leading to a potential strengthening of the innovative drug sector