Deputy Chief Economist

Sharmila Whelan

Independent and original Asian investment research

Aletheia Capital

Aletheia Capital (HK) Ltd. (previously known as Asianomics) combines the extensive knowledge of its experienced team with technology and regulatory changes to disrupt Global Markets business in Asia. The firm is completely independent with no conflicts of interest either on Investment Banking advisory or Capital Markets execution.

Thematic (Sector/Industry)

<p>Last week in Part I we discussed what the GBA Initiative is. The importance of the GBA Initiative cannot be overstated. It is critical to the success of China’s BRI, to China’s Industry 4.0 revolution and to China reducing its reliance on foreign (US) technology.  BRI and the GBA initiative are the cornerstones of China’s defence strategy against Mr Trump’s China Containment plan.  In this note we examine whether the GBA initiative is viable and what it means for investors.</p>

Last week in Part I we discussed what the GBA Initiative is. The importance of the GBA Initiative cannot be overstated. It is critical to the success of China’s BRI, to China’s Industry 4.0 revolution and to China reducing its reliance on foreign (US) technology.  BRI and the GBA initiative are the cornerstones of China’s defence strategy against Mr Trump’s China Containment plan.  In this note we examine whether the GBA initiative is viable and what it means for investors.

Greater Bay Area Initiative - Viablity & Investor Implications, Part II

<p>The US-China trade tensions have eased for the moment. But China’s leaders realise that the real war between a rising and an existing economic superpower will be a protracted one.  Recognising this, China is accelerating regional integration while exploiting comparative advantages to encourage the growth of new technology and specialisation hubs at home. China’s Belt and Road Initiative, which will open up new markets by connecting the Eurasia landmass is one hedge against rising US protectionism. Of equal importance is the development of the Greater Bay Area (GBA). It is integral to the success of the BRI and President’s Xi Jinping’s Made in China 2025 plan.  We explain why over the course of two notes. This is the first.</p>

The US-China trade tensions have eased for the moment. But China’s leaders realise that the real war between a rising and an existing economic superpower will be a protracted one.  Recognising this, China is accelerating regional integration while exploiting comparative advantages to encourage the growth of new technology and specialisation hubs at home. China’s Belt and Road Initiative, which will open up new markets by connecting the Eurasia landmass is one hedge against rising US protectionism. Of equal importance is the development of the Greater Bay Area (GBA). It is integral to the success of the BRI and President’s Xi Jinping’s Made in China 2025 plan.  We explain why over the course of two notes. This is the first.

Greater Bay Initiative - Upping Integration, Part 1

Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/abbisko-cayman-limited" target="_blank" data-smartkarma-citation="entities:33511:1" rel="noopener">Abbisko Cayman (2256 HK)</a> is placing 42.9M shares at the price of HK$12.18 per share to raise HK$517M. Placing shares represent ~6.4% of the total number of issued shares.</li>
<li>The placing price indicates a discount of 8.4% to the undisturbed closing price. The placement is expected to take place on April 28, 2026.  </li>
<li>Abbisko intends to use the net proceeds for the R&amp;D of innovative oncology and non-oncology drug candidates, advancement of international clinical trials, and potential commercialization activities.</li>
</ul>



Abbisko Cayman (2256 HK) is placing 42.9M shares at the price of HK$12.18 per share to raise HK$517M. Placing shares represent ~6.4% of the total number of issued shares.
The placing price indicates a discount of 8.4% to the undisturbed closing price. The placement is expected to take place on April 28, 2026.  
Abbisko intends to use the net proceeds for the R&amp;D of innovative oncology and non-oncology drug candidates, advancement of international clinical trials, and potential commercialization activities.


Abbisko Cayman (2256 HK): Placement of Shares to Feed R&D Pipeline

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Zhejiang Jingxin Pharmaceutical Co., / Equity Capital Markets

Zhejiang Jingxin Pharmaceutical Co., (002020 CH)

<ul>
<li>Jingxin isn’t a purely innovative drug company. Instead, it adopts a "generic + innovative" approach.Its competitive advantage doesn’t lie in disruptive technologies, but deep market penetration in specific therapeutic areas.</li>
<li>Due to VBP, profit margin is not satisfactory, but as Dimdazenil has been included in the NRDL, this product is expected to become an important growth point in the future.</li>
<li>Peers include CSPC, <a href="https://www.smartkarma.com/entities/simcere-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:29186:1" rel="noopener">Simcere Pharmaceutical (2096 HK)</a>, <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-pharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:44224:1" rel="noopener">Hengrui (1276 HK)</a>, <a href="https://www.smartkarma.com/entities/sino-biopharmaceutical" target="_blank" data-smartkarma-citation="entities:230:1" rel="noopener">Sino Biopharmaceutical (1177 HK)</a>. Based on our analysis, we think valuation of Jingxin would be lower than these four companies.</li>
</ul>


Jingxin isn’t a purely innovative drug company. Instead, it adopts a "generic + innovative" approach.Its competitive advantage doesn’t lie in disruptive technologies, but deep market penetration in specific therapeutic areas.
Due to VBP, profit margin is not satisfactory, but as Dimdazenil has been included in the NRDL, this product is expected to become an important growth point in the future.
Peers include CSPC, Simcere Pharmaceutical (2096 HK), Hengrui (1276 HK), Sino Biopharmaceutical (1177 HK). Based on our analysis, we think valuation of Jingxin would be lower than these four companies.


Pre-IPO Zhejiang Jingxin Pharmaceutical (A/H Listing) - Growth Path Returns as VBP Will Subside

Lupeng Pharmaceutical / Equity Capital Markets

<ul>
<li>The product that best represents Lupeng's breakthrough proposition from numerous pipelines would undoubtedly be LP-168, whose unique development path has the opportunity to gain market attention. </li>
<li>How much market LP-168 is able to seize from existing players is highly uncertain. Since LP-108/LP-118 are in early clinical stage, there's a possibility of R&amp;D failure in the future.</li>
<li>Post-Money valuation after Series B Financing was US$311.25mn. Since Lupeng has no commercialized products on the market, its valuation would be lower than peers such as BeiGene, Innocare and Ascentage.</li>
</ul>


The product that best represents Lupeng's breakthrough proposition from numerous pipelines would undoubtedly be LP-168, whose unique development path has the opportunity to gain market attention. 
How much market LP-168 is able to seize from existing players is highly uncertain. Since LP-108/LP-118 are in early clinical stage, there's a possibility of R&amp;D failure in the future.
Post-Money valuation after Series B Financing was US$311.25mn. Since Lupeng has no commercialized products on the market, its valuation would be lower than peers such as BeiGene, Innocare and Ascentage.


Pre-IPO Lupeng Pharmaceutical - Unique Pipeline May Not Guarantee the Commercialization Outlook

China

Ascentage Pharma is a clinical-stage biotechnology company focused on discovering, developing, and commercializing novel small-molecule therapies for cancers, hepatitis B virus, and certain age-related diseases. The company specializes in therapies that inhibit protein-protein interactions to restore programmed cell death, with lead assets including olverembatinib and lisaftoclax for hematological malignancies. Ascentage Pharma was founded in 2009 and is headquartered in Suzhou, China.

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Ascentage Pharma (6855 HK)

Greater Bay Area Initiative - Viablity & Investor Implications, Part II

Last week in Part I we discussed what the GBA Initiative is. The importance of the GBA Initiative cannot be overstated. It is critical to the...

Sharmila Whelan

Greater Bay Initiative - Upping Integration, Part 1

The US-China trade tensions have eased for the moment. But China’s leaders realise that the real war between a rising and an existing economic...

Sharmila Whelan

Abbisko Cayman (2256 HK): Placement of Shares to Feed R&D Pipeline

Abbisko Cayman is placing 42.9M shares at the price of HK$12.18 per share to raise HK$517M. The company intends to use the proceeds for the R&D of...

Tina Banerjee

Pre-IPO Zhejiang Jingxin Pharmaceutical (A/H Listing) - Growth Path Returns as VBP Will Subside

Jingxin's "generic + innovative" approach focus on market penetration rather than disruptive technology. Dimdazenil's inclusion in NRDL will drive...

Xinyao (Criss) Wang

Pre-IPO Lupeng Pharmaceutical - Unique Pipeline May Not Guarantee the Commercialization Outlook

Lupeng's LP-168 shows promise but faces uncertainty in market competition. LP-108 and LP-118 are in early clinical stage with high R&D failure...

Xinyao (Criss) Wang

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Greater Bay Area Initiative - Viablity & Investor Implications, Part II

Last week in Part I we discussed what the GBA Initiative is. The importance of the GBA Initiative cannot be overstated. It is critical to the...

Sharmila Whelan

Greater Bay Initiative - Upping Integration, Part 1

The US-China trade tensions have eased for the moment. But China’s leaders realise that the real war between a rising and an existing economic...

Sharmila Whelan

Abbisko Cayman (2256 HK): Placement of Shares to Feed R&D Pipeline

Abbisko Cayman is placing 42.9M shares at the price of HK$12.18 per share to raise HK$517M. The company intends to use the proceeds for the R&D of...

Tina Banerjee

Pre-IPO Zhejiang Jingxin Pharmaceutical (A/H Listing) - Growth Path Returns as VBP Will Subside

​Jingxin's "generic + innovative" approach focus on market penetration rather than disruptive technology. Dimdazenil's inclusion in NRDL will drive...

Xinyao (Criss) Wang

Pre-IPO Lupeng Pharmaceutical - Unique Pipeline May Not Guarantee the Commercialization Outlook

​Lupeng's LP-168 shows promise but faces uncertainty in market competition. LP-108 and LP-118 are in early clinical stage with high R&D failure...

Xinyao (Criss) Wang

Jingxin's "generic + innovative" approach focus on market penetration rather than disruptive technology. Dimdazenil's inclusion in NRDL will drive...

Lupeng's LP-168 shows promise but faces uncertainty in market competition. LP-108 and LP-118 are in early clinical stage with high R&D failure...