Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The Hong Kong market continues to show gains on the back of a strong July.  The standout sectors this month include materials and healthcare.</li>
<li>Since the bottom of its bear market, Hong Kong has continued to outperform most Asian markets, even though its valuation remains well below that of others in the region.</li>
<li>
<a href="https://www.smartkarma.com/entities/sichuan-kelun-biotech-biopharmaceutical-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:40071:1" rel="noopener">Sichuan Kelun-Biotech Biopharmaceutical (6990 HK)</a> was rated a BUY by several analysts, including UBS and JPM, after 1H26 earnings announcement, benefiting from its partnership with <a href="https://www.smartkarma.com/entities/merck-co-inc" target="_blank" data-smartkarma-citation="entities:1130:1" rel="noopener">Merck &amp; Co (MRK US).</a>
</li>
</ul>


The Hong Kong market continues to show gains on the back of a strong July.  The standout sectors this month include materials and healthcare.
Since the bottom of its bear market, Hong Kong has continued to outperform most Asian markets, even though its valuation remains well below that of others in the region.

Sichuan Kelun-Biotech Biopharmaceutical (6990 HK) was rated a BUY by several analysts, including UBS and JPM, after 1H26 earnings announcement, benefiting from its partnership with Merck &amp; Co (MRK US).



BUY/SELL/HOLD: Hong Kong Market Update (August 2026)

Healthcare Analyst

Wilfred Yuen

Thematic (Sector/Industry)

<ul>
<li>
Genscript delivered a strong set of 1H26 results, driven by AI demands. Kelun Bio, CSPC, Sino Biopharm delivered positive 1H26 results, thanks to revenue ramp-up from innovative drugs and BD</li>
<li>Hengrui missed its 2Q26 results, dragged down by generic drugs (-17% QoQ to RMB2.3bn) and moderating growth from oncology segment (-6% YoY). Yet, we are positive on its pipeline progress</li>
<li>Other updates from this week include Zai Lab/Argenx, Hutchmed/AstraZeneca, and EyePoint/Betta Pharma...
</li>
</ul>



Genscript delivered a strong set of 1H26 results, driven by AI demands. Kelun Bio, CSPC, Sino Biopharm delivered positive 1H26 results, thanks to revenue ramp-up from innovative drugs and BD
Hengrui missed its 2Q26 results, dragged down by generic drugs (-17% QoQ to RMB2.3bn) and moderating growth from oncology segment (-6% YoY). Yet, we are positive on its pipeline progress
Other updates from this week include Zai Lab/Argenx, Hutchmed/AstraZeneca, and EyePoint/Betta Pharma...



Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Merck is making headlines again, this time for reportedly circling Revolution Medicines in what could be one of the largest biotech acquisitions of 2026.</li><li>According to recent reports, Merck is in advanced discussions to acquire Revolution for somewhere between $28 billion and $32 billion, a potential move that underscores its push to diversify beyond its blockbuster immunotherapy Keytruda.</li><li>The acquisition chatter comes just months after Merck wrapped up its $10 billion Verona Pharma buyout and a $9.2 billion deal for antiviral player Cidara.</li></ul>

Merck is making headlines again, this time for reportedly circling Revolution Medicines in what could be one of the largest biotech acquisitions of 2026.According to recent reports, Merck is in advanced discussions to acquire Revolution for somewhere between $28 billion and $32 billion, a potential move that underscores its push to diversify beyond its blockbuster immunotherapy Keytruda.The acquisition chatter comes just months after Merck wrapped up its $10 billion Verona Pharma buyout and a $9.2 billion deal for antiviral player Cidara.

Merck Revolution Medicines Acquisition: How A RAS Cancer Deal Could Offset The Keytruda Cliff!

CEO / Founder, Crea8

Kim-Hwa Lim

CEO / Founder

Make an Impact

Crea8

Crea8 blends AI-driven precision, big data scalability, and rigorous quantitative frameworks with seasoned human insight. By extracting actionable intelligence from vast global datasets, we eliminate emotional bias and deliver optimal risk-adjusted returns. Our hybrid approach uncovers hidden market efficiencies and ensures your capital is dynamically positioned across markets.

<ul><li>The strategy seeks to invest in global companies with sustainable competitive advantages.</li><li>By adopting a portfolio of stocks instead of individual stocks, the strategy is diversified across countries and industries; and optimised with respect to their expected risks and returns.</li><li>Previous portfolio returned 7.1% vs. MSCI World (4.2%) – outperformed the benchmark by 2.9%.</li></ul>

The strategy seeks to invest in global companies with sustainable competitive advantages.By adopting a portfolio of stocks instead of individual stocks, the strategy is diversified across countries and industries; and optimised with respect to their expected risks and returns.Previous portfolio returned 7.1% vs. MSCI World (4.2%) – outperformed the benchmark by 2.9%.

Global Competitive Barrier Portfolio (18 Aug 2026)

<ul>
<li>China's AI-driven drug discovery (AIDD) sector is growing rapidly, with leading drug and biotech companies entering R&amp;D and drug-development partnerships with global pharmaceutical companies.</li>
<li>Over 30% of new drugs were developed using AI tools in 2025, with discovery timelines reduced by 25–50%, and the industry is projected to grow by 25%/year through 2033.</li>
<li>
<a href="https://www.smartkarma.com/entities/insilico-medicine-cayman-topco" target="_blank" data-smartkarma-citation="entities:39890:1" rel="noopener">Insilico Medicine (3696 HK)</a> is a pure-play AIDD company. Insilico operates an end-to-end AI drug discovery platform (Pharma.AI) spanning target identification, molecule generation, and clinical trial outcome prediction. 
</li>
</ul>


China's AI-driven drug discovery (AIDD) sector is growing rapidly, with leading drug and biotech companies entering R&amp;D and drug-development partnerships with global pharmaceutical companies.
Over 30% of new drugs were developed using AI tools in 2025, with discovery timelines reduced by 25–50%, and the industry is projected to grow by 25%/year through 2033.

Insilico Medicine (3696 HK) is a pure-play AIDD company. Insilico operates an end-to-end AI drug discovery platform (Pharma.AI) spanning target identification, molecule generation, and clinical trial outcome prediction. 



United States

Merck & Co., Inc. is a global health care company that delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products, which it markets directly and through its joint ventures. The Company has operations in pharmaceutical, animal health, and consumer care.

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Merck & (MRK UN)

BUY/SELL/HOLD: Hong Kong Market Update (August 2026)

The Hong Kong market continues to show gains on the back of a strong July. The standout sectors this month include materials and healthcare.

David Mudd

China Healthcare Weekly Wrap (17-21 Aug)

In this weekly wrap, we cover 1H26 results from Genscript, Hengrui, Sino Biopharm, CSPC, Kelun Biotech. Other news/updates include Zai Lab/Argenx,...

Wilfred Yuen

Merck Revolution Medicines Acquisition: How A RAS Cancer Deal Could Offset The Keytruda Cliff!

Merck is making headlines again, this time for reportedly circling Revolution Medicines in what could be one of the largest biotech acquisitions...

Baptista Research

Global Competitive Barrier Portfolio (18 Aug 2026)

The strategy seeks to invest in global companies with sustainable competitive advantages. By adopting a portfolio of stocks instead of individual...

Crea8

CHINA/HK: AI & RX - Together At Last !!

China's AI-driven drug discovery (AIDD) sector is growing rapidly, with leading drug and biotech companies entering R&D and drug-development...

David Mudd

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