Understanding the Market | Innovative drug concept stocks collectively decline as interest rate hike expectations suppress industry valuations and investment financing environment. The market focuses on the progress of the ASCO conference
Innovative drug concept stocks collectively declined, with HANSOH PHARMA falling 6.69%, HUTCHMED dropping 4.81%, INNOVENT BIO decreasing 4.05%, and China National Pharmaceutical Group falling 3.4%. The energy inflation triggered by the Middle East conflict and the global central bank interest rate hike expectations are affecting industry valuations. Guohai Securities warns that if macro policies do not meet expectations, it will suppress the valuation of the pharmaceutical sector. The 2026 ASCO Annual Meeting will be held from May 29 to June 2, showcasing the strength of Chinese pharmaceutical companies on the international stage, with the number of studies reaching a historic high
According to Zhitong Finance APP, innovative drug concept stocks collectively declined. As of the time of publication, HANSOH PHARMA (03692) fell by 6.69%, trading at HKD 31.54; HUTCHMED (00013) dropped by 4.81%, trading at HKD 17.8; INNOVENT BIO (01801) decreased by 4.05%, trading at HKD 75.75; and China National Pharmaceutical Group (01177) fell by 3.4%, trading at HKD 4.83.
On the news front, energy inflation triggered by the Middle East conflict is evolving from expectation to real pressure, with major developed economies' central banks intensively signaling interest rate hikes. Guohai Securities pointed out in its risk warning that if the global and domestic macro monetary policy pace falls short of expectations, it will directly affect the valuation level and investment environment of the pharmaceutical sector. Growth tracks such as innovative drugs and CXO are sensitive to liquidity; if the Federal Reserve's interest rate cut cycle is delayed, or if domestic reserve requirement ratio cuts and interest rate reductions do not meet expectations, tightening market liquidity will directly suppress the valuations of growth tracks.
It is worth noting that the 2026 American Society of Clinical Oncology (ASCO) Annual Meeting will be held in Chicago, USA, from May 29 to June 2. This year's ASCO has a total of 63 studies selected for LBA (Latest Breakthrough Abstracts), with 13 studies from 12 companies coming from China, setting a historical high; at the same time, 94 Chinese studies were selected for oral presentations, showing rapid growth in number over the past three years. Shanghai Securities pointed out that Chinese pharmaceutical companies are showcasing their strength on international platforms, and the global discourse power of Chinese innovative drugs is increasing year by year
