HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>A document titled "<em>Soliciting Opinions on the Implementation Plan for Supporting the Development of Innovative Drugs throughout the Whole Chain</em>" attracted widespread attention, which is significantly different from past policies. </li>
<li>Restrictions on payment end and deteriorating investment and financing situations will be improved, marking a new starting point for China’s innovative drug business. We have reasons to start being optimistic.</li>
<li>If approved and implemented, it would be a significant reversal of the previous expectation and investment logic of innovative drugs. So, investors should not overlook the importance of this document.</li>
</ul>


A document titled "Soliciting Opinions on the Implementation Plan for Supporting the Development of Innovative Drugs throughout the Whole Chain" attracted widespread attention, which is significantly different from past policies. 
Restrictions on payment end and deteriorating investment and financing situations will be improved, marking a new starting point for China’s innovative drug business. We have reasons to start being optimistic.
If approved and implemented, it would be a significant reversal of the previous expectation and investment logic of innovative drugs. So, investors should not overlook the importance of this document.


Important New Policy for China’s Innovative Drugs – The Game Rule Is About to Change Radically

<ul>
<li>If checking the hot ADC transactions in recent years, a very big portion of ADC varieties in global licensing deals are from Chinese pharmaceutical companies, which is actually very rare.</li>
<li>While international buyers are “very generous” for ADC assets and MNC's appetite would remain strong, they will immediately calm down and stop once they see any "potential risk" behind.</li>
<li>For Chinese pharmaceutical companies, ADC license-out deal is more of a temporary catalyst. We suggest taking a rational view. ADC CDMO (e.g. WuXi XDC) could be a better investment option.</li>
</ul>


If checking the hot ADC transactions in recent years, a very big portion of ADC varieties in global licensing deals are from Chinese pharmaceutical companies, which is actually very rare.
While international buyers are “very generous” for ADC assets and MNC's appetite would remain strong, they will immediately calm down and stop once they see any "potential risk" behind.
For Chinese pharmaceutical companies, ADC license-out deal is more of a temporary catalyst. We suggest taking a rational view. ADC CDMO (e.g. WuXi XDC) could be a better investment option.


China's Rising Role in Global ADC Partnership Wave - Opportunities and Risks Behind the Gold Rush

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Jul 31st.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in CCB, Tencent, Alibaba, China Mobile, Yofc, Smic, Zijin Gold Intl.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Jul 31st.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in CCB, Tencent, Alibaba, China Mobile, Yofc, Smic, Zijin Gold Intl.


HK Short Interest Weekly: CCB, Tencent, Alibaba, China Mobile, Yofc, Smic, Zijin Gold Intl

<ul>
<li>We analysed the earning revision of component stocks of MS-China in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on TENCENT, MAXSCEND MICROELECTRONICS, MEITUAN, XIAOMI, JD.COM, JIANGSU ETERN, NCI, CHINA LIFE.</li>
</ul>


We analysed the earning revision of component stocks of MS-China in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on TENCENT, MAXSCEND MICROELECTRONICS, MEITUAN, XIAOMI, JD.COM, JIANGSU ETERN, NCI, CHINA LIFE.


MS-China Index Earning Revision (Jul): TENCENT, MAXSCEND MICROELECTRONICS, MEITUAN, XIAOMI, JD.COM

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

China

Sichuan Kelun-Biotech Biopharmaceutical is a biopharmaceutical company focused on the research, development, manufacturing, and commercialization of innovative biological and small molecule drugs, particularly Antibody-Drug Conjugates (ADCs). It addresses unmet medical needs in oncology, autoimmune disorders, and metabolic diseases, with key products including sacituzumab tirumotecan and trastuzumab botidotin. The company is headquartered in Chengdu, Sichuan, China, and was founded in 2016.

Sichuan Kelun-Biotech Biopharmaceutical (6990 HK)

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Sichuan Kelun-Biotech Biopharmaceutical (6990 HK)

Important New Policy for China’s Innovative Drugs – The Game Rule Is About to Change Radically

A new document about China's innovative drugs would change the game rule/outlook radically. We have reasons to start being optimistic that the...

Xinyao (Criss) Wang

China's Rising Role in Global ADC Partnership Wave - Opportunities and Risks Behind the Gold Rush

As China's ADCs continue to gain recognition from global buyers,the position of Chinese pharmaceutical companies is undergoing fundamental...

Xinyao (Criss) Wang

HK Short Interest Weekly: CCB, Tencent, Alibaba, China Mobile, Yofc, Smic, Zijin Gold Intl

We analyzed the latest HK SFC report for aggregate short position as of Jul 31st and highlight short interest changes in CCB, Tencent, Alibaba,...

Ke Yan, CFA, FRM

MS-China Index Earning Revision (Jul): TENCENT, MAXSCEND MICROELECTRONICS, MEITUAN, XIAOMI, JD.COM

We analyzed MS-China's consensus for Jul 2026 and highlighted changes of EPS in TENCENT, MAXSCEND MICROELECTRONICS, MEITUAN, XIAOMI, JD.COM,...

Ke Yan, CFA, FRM

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

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52-week Range

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