Core Insights - The National Medical Products Administration of China has approved the injection of Acetate Degarelix (trademarked as Qinglishu) developed by Chengdu Tianqing Pharmaceutical, which is used for androgen deprivation therapy in prostate cancer patients [2] - Chengdu Tianqing's Acetate Degarelix has previously been approved in the EU and is the first generic drug globally, with temporary approval in the US [2] - The company successfully challenged two core patent claims of the original drug during the domestic application review process, allowing the product to gain a "12-month exclusivity period" under China's early resolution mechanism for drug patent disputes [2] Industry Mechanism - The early resolution mechanism for drug patent disputes, also known as the drug patent linkage system, aims to balance the interests of innovative drug companies and generic drug manufacturers, promoting the early market entry of generics while protecting drug innovation [2] - This mechanism encourages healthy competition in the industry and allows patients to access more affordable generic drugs sooner [2] - Chengdu Tianqing's successful patent challenges were supported by the Beijing Intellectual Property Court, demonstrating the effectiveness of this system in facilitating market competition [2]

Core Insights - China has approved the injection of Acetate Degarelix (brand name: Qinglishu) developed by Chengda Tianqing Pharmaceutical Group for prostate cancer patients requiring androgen deprivation therapy, providing a new treatment option for over 100,000 patients annually [1][2] - The drug has already been approved in the EU and received temporary approval in the US, marking it as the first generic version globally [1][3] - Chengda Tianqing successfully challenged two core patent claims of the original drug, allowing the product to gain a "12-month exclusivity period" under China's early resolution mechanism for drug patent disputes [1][4] Industry Context - Prostate cancer is the second most common cancer among men globally, with 1.5 million new cases and nearly 400,000 deaths reported in 2022 [2] - In China, the incidence of prostate cancer has been rising, with 134,200 new cases in 2022, often diagnosed at advanced stages due to subtle early symptoms [2] - Acetate Degarelix acts as a GnRH receptor antagonist, reducing the release of gonadotropins and testosterone, and is recommended in major treatment guidelines since its US launch in 2008 [2][3] Product Development - The development of Acetate Degarelix involved overcoming significant technical challenges in formulation and raw material development, with Chengda Tianqing achieving compliance with US and EU standards [3] - The product's current prices under medical insurance are 2,046 yuan (for 120mg, 2 vials) and 750 yuan (for 80mg, 1 vial), which is expected to provide a more affordable option for patients compared to the original drug [3][4] Patent Challenge and Market Impact - The drug is the second to receive a "12-month exclusivity period" under China's drug patent linkage system, which aims to balance the interests of innovative and generic drug companies [4][5] - Chengda Tianqing's successful patent challenges are expected to enhance market competition and significantly reduce patient costs, as seen with their previous product, Everolimus tablets, which were priced over 500 yuan lower than the original [5]

Market Overview - On September 11, the Hang Seng Index fell by 0.43%, closing at 26,086.32 points, while southbound funds through the Stock Connect recorded a net purchase of HKD 18.989 billion [1][3] - The total trading volume for the Stock Connect on September 11 was HKD 172.214 billion, with a net purchase of HKD 18.989 billion [1] Stock Performance - In the Shanghai Stock Connect, the total trading volume was HKD 103.737 billion, with a net purchase of HKD 8.073 billion [1] - In the Shenzhen Stock Connect, the total trading volume was HKD 68.477 billion, with a net purchase of HKD 10.916 billion [1] Active Stocks - The most actively traded stock in the Shanghai Stock Connect was Alibaba-W, with a trading volume of HKD 80.75 billion and a net purchase of HKD 29.46 billion, closing up by 0.35% [1][2] - Meituan-W had the highest net sell amount of HKD 9.36 billion, closing down by 5.06% [1][2] - In the Shenzhen Stock Connect, Alibaba-W also led with a trading volume of HKD 43.575 billion and a net purchase of HKD 7.835 billion [2] - The top net purchase stock was Innovent Biologics, with a net purchase of HKD 0.847 billion, despite closing down by 2.51% [2] Summary of Key Stocks | Stock Code | Stock Name | Trading Volume (HKD million) | Net Purchase (HKD million) | Daily Change (%) | |------------|------------------|------------------------------|----------------------------|-------------------| | 09988 | Alibaba-W | 807.48 | 294.62 | 0.35 | | 03690 | Meituan-W | 618.38 | -93.59 | -5.06 | | 00981 | SMIC | 491.04 | 41.75 | 4.97 | | 01801 | Innovent Biologics| 253.79 | 84.73 | -2.51 | | 00700 | Tencent Holdings | 263.33 | -92.26 | -0.63 | [2]

Market Overview - On September 11, the Hang Seng Index fell by 0.43% with a total southbound trading volume of HKD 172.21 billion, including buy transactions of HKD 95.60 billion and sell transactions of HKD 76.61 billion, resulting in a net buy of HKD 18.99 billion [1] Southbound Trading Activity - The southbound trading through Stock Connect (Shenzhen) had a total trading volume of HKD 68.48 billion, with buy transactions of HKD 39.70 billion and sell transactions of HKD 28.78 billion, leading to a net buy of HKD 10.92 billion [1] - The southbound trading through Stock Connect (Shanghai) had a total trading volume of HKD 103.74 billion, with buy transactions of HKD 55.91 billion and sell transactions of HKD 47.83 billion, resulting in a net buy of HKD 8.07 billion [1] Active Stocks - Alibaba-W was the most actively traded stock with a total trading volume of HKD 124.32 billion and a net buy of HKD 37.30 billion, closing with a price increase of 0.35% [1][2] - Other notable stocks included Meituan-W and SMIC, with trading volumes of HKD 84.52 billion and HKD 80.43 billion, respectively [1] - Tencent Holdings had the highest net sell amount of HKD 11.51 billion, closing down by 0.63% [1][2] Continuous Net Buying and Selling - Alibaba-W and SMIC were the only two stocks with continuous net buying for more than three days, with Alibaba-W having a total net buy of HKD 371.43 billion over 15 days and SMIC with HKD 15.76 billion over 3 days [2] - Stocks with continuous net selling included Kangfang Biotech, Tencent Holdings, and Meituan-W, with total net sell amounts of HKD 17.48 billion, HKD 14.61 billion, and HKD 10.28 billion, respectively [2]

Core Insights - On September 11, 2025, Alibaba-W (09988), Meituan-W (03690), and SMIC (00981) were the top three stocks by trading volume in the southbound trading of the Shanghai-Hong Kong Stock Connect, with trading amounts of 8.075 billion, 6.184 billion, and 4.910 billion respectively [1] - In the southbound trading of the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), SMIC (00981), and Innovent Biologics (01801) led the trading volume, with amounts of 4.357 billion, 3.132 billion, and 2.538 billion respectively [1] Southbound Trading Highlights - **Shanghai-Hong Kong Stock Connect:** - Alibaba-W (09988): Trading amount of 8.075 billion, net buying of 2.946 billion - Meituan-W (03690): Trading amount of 6.184 billion, net selling of 0.936 billion - SMIC (00981): Trading amount of 4.910 billion, net buying of 0.417 billion - Other notable companies include Kangfang Biologics (09926) with a trading amount of 2.797 billion and net selling of 0.755 billion, and Tencent Holdings (00700) with a trading amount of 2.633 billion and net selling of 0.923 billion [2] - **Shenzhen-Hong Kong Stock Connect:** - Alibaba-W (09988): Trading amount of 4.357 billion, net buying of 0.784 billion - SMIC (00981): Trading amount of 3.132 billion, net buying of 0.515 billion - Innovent Biologics (01801): Trading amount of 2.538 billion, net buying of 0.847 billion - Other significant companies include Kangfang Biologics (09926) with a trading amount of 2.418 billion and net buying of 0.365 billion, and Meituan-W (03690) with a trading amount of 2.268 billion and net buying of 0.839 billion [2]

Group 1 - The Hong Kong stock market saw a collective decline in the biopharmaceutical sector, with China Biologic Products and CSPC Pharmaceutical Group dropping over 10% [1] - Fosun Pharma experienced a decline of over 7%, while WuXi Biologics and WuXi AppTec also followed suit with declines [1]

Market Overview - The Hang Seng Index closed down 0.29% at midday on September 11, while the Hang Seng Tech Index fell by 0.09% [1] Sector Performance - The semiconductor sector showed strong performance, with SMIC rising over 6%, and Huahong Semiconductor and Shanghai Fudan both increasing nearly 6% [1] - Conversely, the pharmaceutical and automotive sectors experienced declines, with Hansoh Pharmaceutical dropping 9.18% and China Biologic Products falling 5.46% [1]

Core Viewpoint - The A-share market shows a strong upward trend, with significant gains in sectors such as computing hardware, semiconductors, and liquid-cooled servers, while sports and precious metals sectors remain sluggish [3][4]. Market Performance - The Shanghai Composite Index rose by 1.12%, the Shenzhen Component Index increased by 2.63%, and the ChiNext Index surged by 4.31% [3]. - The total trading volume in the Shanghai and Shenzhen markets reached 1.48 trillion yuan, an increase of 193.8 billion yuan compared to the previous trading day, with over 3,300 stocks rising [4]. Sector Highlights - Notable sectors with significant gains include: - Components: +6.54% - Co-packaged optics (CPO): +6.13% - AI 50 Index: +4.83% - PCB concept: +4.40% - Fiber optic concept: +4.11% [4]. - Semiconductor stocks, particularly computing chips, experienced a notable surge, with companies like Haiguang Information nearing a 20% limit up [6][13]. Individual Stock Movements - Industrial Fulian reached a new historical high, increasing by 8.78% to 58.38 yuan [9]. - In the pork sector, stocks such as Bangji Technology and Lihua Shares saw significant increases, with Bangji Technology hitting the daily limit up [11][12]. International Market Influence - OpenAI reportedly signed a deal to purchase $300 billion worth of computing power from Oracle over five years, leading to a 36% surge in Oracle's stock, which added approximately $250 billion to its market capitalization in a single day [13].

Group 1 - The Hong Kong pharmaceutical sector experienced a significant decline, with major stocks dropping sharply [1] - Gilead Sciences-B (01672.HK) fell nearly 15%, indicating a substantial loss in market value [1] - China Biopharmaceutical (01177.HK) saw a decline of over 10%, reflecting broader market trends affecting the industry [1] Group 2 - Other notable declines included CSPC Pharmaceutical Group (01093.HK), BeiGene (06160.HK), Hengrui Medicine (01276.HK), and WuXi AppTec (02359.HK), all of which experienced significant drops [1]

Group 1 - The stock price of China Biologic Products Holdings has dropped by 11%, reaching 7.75 HKD [1] - The trading volume for the stock was 233 million HKD [1] - The total market capitalization of the company is 145.4 billion HKD [1]