Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

Shaanxi Micot Pharmaceutical Technology / Equity Capital Markets

Shaanxi Micot Pharmaceutical Technology (SMP HK)

<ul>
<li>Shaanxi Micot Pharmaceutical Technology, a clinical-stage biotechnology company, has launched HK IPO consisting of 58M H shares. The indicative offer price range has been fixed at HK$18.20–21.00 per share.</li>
<li>The company intends to raise HK$1,219M, primarily to fund ongoing and planned clinical trials and planned commercial launch of core and key product candidates.</li>
<li>The subscription period will close on June 18, with the shares expected to make trading debut on June 24. CCB International and CMS are the joint sponsors to the issue.</li>
</ul>


Shaanxi Micot Pharmaceutical Technology, a clinical-stage biotechnology company, has launched HK IPO consisting of 58M H shares. The indicative offer price range has been fixed at HK$18.20–21.00 per share.
The company intends to raise HK$1,219M, primarily to fund ongoing and planned clinical trials and planned commercial launch of core and key product candidates.
The subscription period will close on June 18, with the shares expected to make trading debut on June 24. CCB International and CMS are the joint sponsors to the issue.


Micot Pharmaceutical IPO: Sizable End Market and Product Superiority to Drive Sustainable Growth

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>The June rebalance of the Hang Seng family of indices will use today's closing prices to cap the index constituent weights.</li>
<li>The net round-trip trade across all stocks across the five indices is estimated at HK$49.6bn (US$6.33bn). There is size to trade in a lot of stocks.</li>
<li>The stocks with forecast inflows marginally outperformed the stocks with forecast outflows prior to announcement of the changes, but there has been underperformance since announcement.</li>
</ul>


The June rebalance of the Hang Seng family of indices will use today's closing prices to cap the index constituent weights.
The net round-trip trade across all stocks across the five indices is estimated at HK$49.6bn (US$6.33bn). There is size to trade in a lot of stocks.
The stocks with forecast inflows marginally outperformed the stocks with forecast outflows prior to announcement of the changes, but there has been underperformance since announcement.


HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$6.3bn of Flows Post Capping (June 2026)

<ul>
<li>The changes to the Hang Seng family of indices were announced post market close on Friday - final capping will use closing prices from 2 June.</li>
<li>There are 3 adds for the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">HSI</a>, 2 changes each for the<a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener"> HSCEI</a> and <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">HSTECH</a>, 1 change for the HSBIO Index and 7 adds for the HSCI Index.</li>
<li>There will be positioning in most stocks but there could be continued positioning in the names that will be added to Southbound Stock Connect.</li>
</ul>


The changes to the Hang Seng family of indices were announced post market close on Friday - final capping will use closing prices from 2 June.
There are 3 adds for the HSI, 2 changes each for the HSCEI and HSTECH, 1 change for the HSBIO Index and 7 adds for the HSCI Index.
There will be positioning in most stocks but there could be continued positioning in the names that will be added to Southbound Stock Connect.


Hang Seng Indexes: Changes Lead to US$6.6bn Trade; Plus Stock Connect & Global Index Inclusions

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ascentage-pharma-group-inter" target="_blank" data-smartkarma-citation="entities:27824:1" rel="noopener">Ascentage Pharma Group Corp (6855 HK)</a> reported revenue of RMB 574.1M in 2025, down 41.5%, because of high base effect, as the company had received intellectual property payments in 2024.</li>
<li>In 2025, the revenue from olverembatinib was RMB 435.3M (RMB 241M in 2024), up 81% YoY. Lisaftoclax, approved in July 2025, garnered RMB 70.6M in sales.</li>
<li>Ascentage is currently conducting a number of global registrational Phase III trials across its pipeline. 2026 will be crucial, losses will continue and is not expected turnaround atleast before 2027.</li>
</ul>



Ascentage Pharma Group Corp (6855 HK) reported revenue of RMB 574.1M in 2025, down 41.5%, because of high base effect, as the company had received intellectual property payments in 2024.
In 2025, the revenue from olverembatinib was RMB 435.3M (RMB 241M in 2024), up 81% YoY. Lisaftoclax, approved in July 2025, garnered RMB 70.6M in sales.
Ascentage is currently conducting a number of global registrational Phase III trials across its pipeline. 2026 will be crucial, losses will continue and is not expected turnaround atleast before 2027.


Ascentage Pharma (6855 HK): 2026 Will Be Crucial, Olverembatinib and Lisaftoclax To Gain Momentum

CStone Pharmaceuticals / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cstone-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:27882:1" rel="noopener">CStone Pharmaceuticals (2616 HK)</a> reported decrease of 34% YoY in revenue to RMB 269.6M as sales of pralsetinib decreased substantially due to price adjustments in preparation for the NRDL negotiation.</li>
<li>R&amp;D expenses increased by 131% to RMB 311.5M due to an increase in third party contracting costs. Ended 2025 with loss of RMB 437M vs RMB 90.2M loss in 2024.</li>
<li>Sugemalimab launches in new overseas territories would be next big trigger for the stock. Eventually, in the medium-long term Aykavit and Gavreto will help and boost revenues.</li>
</ul>



CStone Pharmaceuticals (2616 HK) reported decrease of 34% YoY in revenue to RMB 269.6M as sales of pralsetinib decreased substantially due to price adjustments in preparation for the NRDL negotiation.
R&amp;D expenses increased by 131% to RMB 311.5M due to an increase in third party contracting costs. Ended 2025 with loss of RMB 437M vs RMB 90.2M loss in 2024.
Sugemalimab launches in new overseas territories would be next big trigger for the stock. Eventually, in the medium-long term Aykavit and Gavreto will help and boost revenues.


CStone Pharma (2616 HK): 2025 Seen Off Well, 2026 Would Be Crucial. A Possible Turnaround On Cards?

China

Everest Medicines is a biopharmaceutical company focused on discovering, developing, manufacturing, and commercializing innovative pharmaceutical products and vaccines. The company has a product pipeline across renal, anti-infective, autoimmune, critical care, cardiovascular, and ophthalmic diseases, including products like Nefecon (TarpeyoTM) and Eravacycline (Xerava). Everest Medicines was founded in 2017 and is headquartered in Shanghai, China.

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Everest Medicines (1952 HK)

Micot Pharmaceutical IPO: Sizable End Market and Product Superiority to Drive Sustainable Growth

Micot Pharma has launched HK IPO consisting of 58M H shares at HK$18.20–21.00 per share to fund clinical trials and planned commercial launch of...

Tina Banerjee

HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$6.3bn of Flows Post Capping (June 2026)

The June rebalance of the HSI, HSCEI, HSTECH, HSIII, HSHKBIO indices will use 2 June closing prices for capping. The round-trip trade across the...

Brian Freitas

Hang Seng Indexes: Changes Lead to US$6.6bn Trade; Plus Stock Connect & Global Index Inclusions

There are a number of constituent, float and capping changes for the Hang Seng family, leading to a US$6.6bn trade. Stock Connect additions, lock...

Brian Freitas

Ascentage Pharma (6855 HK): 2026 Will Be Crucial, Olverembatinib and Lisaftoclax To Gain Momentum

Ascentage Pharma reported revenue decline in 2025 due to high base effect. Olverembatinib and Lisaftoclax shine. Focus is on global Phase III...

Tina Banerjee

CStone Pharma (2616 HK): 2025 Seen Off Well, 2026 Would Be Crucial. A Possible Turnaround On Cards?

CStone Pharma announced placement of 118M shares at a price of HK$ 8.97 per share. The proceeds (~ HK$ 1B) will be used for R&D of “Pipeline 2.0”...

Tina Banerjee

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Micot Pharmaceutical IPO: Sizable End Market and Product Superiority to Drive Sustainable Growth

Micot Pharma has launched HK IPO consisting of 58M H shares at HK$18.20–21.00 per share to fund clinical trials and planned commercial launch of...

Tina Banerjee

HSI, HSCEI, HSTECH, HSIII, HSBIO Index Rebalance: US$6.3bn of Flows Post Capping (June 2026)

The June rebalance of the HSI, HSCEI, HSTECH, HSIII, HSHKBIO indices will use 2 June closing prices for capping. The round-trip trade across the...

Brian Freitas

Hang Seng Indexes: Changes Lead to US$6.6bn Trade; Plus Stock Connect & Global Index Inclusions

There are a number of constituent, float and capping changes for the Hang Seng family, leading to a US$6.6bn trade. Stock Connect additions, lock...

Brian Freitas

Ascentage Pharma (6855 HK): 2026 Will Be Crucial, Olverembatinib and Lisaftoclax To Gain Momentum

​Ascentage Pharma reported revenue decline in 2025 due to high base effect. Olverembatinib and Lisaftoclax shine. Focus is on global Phase III...

Tina Banerjee

CStone Pharma (2616 HK): 2025 Seen Off Well, 2026 Would Be Crucial. A Possible Turnaround On Cards?

CStone Pharma announced placement of 118M shares at a price of HK$ 8.97 per share. The proceeds (~ HK$ 1B) will be used for R&D of “Pipeline 2.0”...

Tina Banerjee

Ascentage Pharma reported revenue decline in 2025 due to high base effect. Olverembatinib and Lisaftoclax shine. Focus is on global Phase III...