Core Insights - The pharmaceutical industry is positioned as a perennial growth sector due to aging populations, urbanization, and changing disease profiles, with a strong recovery expected in 2025 after a downturn from 2022 to 2024, driven by both innovative drugs and medical devices [2][3] - Demand and supply dynamics will remain central to the pharmaceutical industry's research, with innovation cycles and policy adjustments influencing demand growth [2][3] - The supply side is characterized by limited supply and high entry barriers, with increasing participation of Chinese companies in international competition, leading to the emergence of world-class enterprises in the pharmaceutical sector [3][4] Industry Overview - The pharmaceutical industry is expected to see significant growth in 2025, driven by a resurgence in demand for innovative drugs and a recovery in domestic medical device needs, alongside strong external demand [2] - The demand for pharmaceuticals typically fluctuates with innovation and policy cycles, with a notable increase in overseas business development (BD) opportunities anticipated in 2025 [2][5] - The Chinese pharmaceutical sector is increasingly recognized globally, with local companies making strides in various niche markets [3][4] Investment Opportunities - Opportunities in innovative drugs are highlighted, particularly in oncology, metabolic diseases, and autoimmune diseases, with a focus on next-generation therapies and precision medicine [5][29] - The report emphasizes the importance of understanding the supply-demand structure and industry upgrades when conducting detailed research on specific segments within the pharmaceutical industry [4][5] - The report identifies key players and segments for investment, including CXO services, medical devices, and consumer healthcare, with specific companies recommended for increased holdings [6][5] Market Dynamics - The report outlines the competitive landscape among top global pharmaceutical companies, noting significant changes in rankings due to the performance of key products [11][19] - Chinese companies are becoming a major source of projects for multinational corporations (MNCs), with increasing transaction volumes and values in recent years [19][21] - The report discusses the strategic focus of MNCs on acquiring innovative assets and technologies to strengthen their market positions, particularly in oncology and metabolic disease sectors [12][18] Future Trends - The report anticipates breakthroughs in various therapeutic areas, including oncology, metabolic diseases, and autoimmune diseases, with a focus on innovative treatment modalities such as TCE and in vivo CAR-T [29][30] - The small nucleic acid field is expected to accelerate, with significant advancements anticipated in 2026 across multiple indications [29][30] - The report highlights the importance of collaboration and co-development models as a means for Chinese companies to enhance their global competitiveness [25][28]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年10月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 三生制药（「本公司」） 呈交日期: 2025年11月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01530 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 50,000,000,000 | USD | | 0.00001 | USD | | 500,000 | | 增加 / 減少 (-) | | | | | | | USD | | | | 本月底結存 | | | 50,000,000,000 | USD | | 0.00001 | USD | | 500,000 | 本月底法定 ...

Core Insights - On November 3, 2025, Alibaba-W (09988), SMIC (00981), and Xiaomi Group-W (01810) were the top three companies by trading volume in the Southbound Stock Connect, with trading amounts of 3.151 billion, 2.865 billion, and 2.054 billion respectively [1] Group 1: Southbound Trading Activity - Alibaba-W (09988) had a trading amount of 3.151 billion with a net buy of -96.034 million [2] - SMIC (00981) recorded a trading amount of 2.865 billion with a net buy of -1.149 billion [2] - Xiaomi Group-W (01810) achieved a trading amount of 2.054 billion with a net buy of +293 million [2] - Tencent Holdings (00700) had a trading amount of 1.324 billion with a net buy of +401 million [2] - China National Offshore Oil Corporation (00883) also had a trading amount of 1.324 billion with a net buy of +465 million [2] - Hua Hong Semiconductor (01347) reported a trading amount of 1.125 billion with a net buy of -568 million [2] - Pop Mart International (09992) had a trading amount of 750 million with a net buy of +130 million [2] - Sanofi (01530) recorded a trading amount of 718 million with a net buy of +324 million [2] - Innovent Biologics (01801) had a trading amount of 708 million with a net buy of +281 million [2] - CanSino Biologics (09926) achieved a trading amount of 673 million with a net buy of +373 million [2]

Group 1 - Xiaomi Group has seen a net buy of HKD 1.029 billion, with a total of HKD 19.1269 billion net bought over four consecutive days [1] - CNOOC reported a net buy of HKD 0.993 billion, totaling HKD 16.0304 billion net bought over three consecutive days [1] - Tencent Holdings experienced a net sell of HKD 1.51 billion, with a total of HKD 19.9056 billion net sold over four consecutive days [1] Group 2 - Xiaomi's automotive division announced that it will deliver over 40,000 vehicles by October 2025, with a significant reduction in delivery times due to increased production capacity [3] - CNOOC's Q3 revenue reached CNY 104.895 billion, a year-on-year increase of 5.7%, while net profit decreased by 12.2% [3] - China Mobile, along with China Unicom and China Telecom, has received approval to conduct commercial trials for eSIM mobile services, which are expected to enhance user communication needs and provide opportunities for domestic software and systems [4]

Core Insights - The Hong Kong stock market saw a net inflow of 54.72 billion HKD from northbound trading on November 3, with 13.04 billion HKD from the Shanghai Stock Connect and 41.68 billion HKD from the Shenzhen Stock Connect [1] Group 1: Stock Performance - The most net bought stocks included Xiaomi Group-W (01810), CNOOC (00883), and China Mobile (00941) [1] - The most net sold stocks were SMIC (00981), Alibaba-W (09988), and Hua Hong Semiconductor (01347) [1] Group 2: Individual Stock Analysis - Xiaomi Group-W (01810) received a net inflow of 10.29 billion HKD, with Citigroup estimating that its electric vehicle deliveries exceeded 40,000 units in October, bringing the year-to-date total to over 308,000 units, achieving 88% of its 2025 target of 350,000 units [5] - CNOOC (00883) saw a net inflow of 9.93 billion HKD, with OPEC+ announcing a production increase of 137,000 barrels per day in December, while also planning to pause production increases from January to March next year [5] - Kangfang Biopharma (09926) had a net inflow of 3.72 billion HKD, as its dual-specific antibody drug was included in the breakthrough therapy designation list, accelerating its clinical development [6] - Three-Sixty Biopharma (01530) received a net inflow of 3.25 billion HKD, with Pfizer starting two global Phase III clinical trials for its dual-specific antibody [6] - Innovent Biologics (01801) had a net inflow of 2.96 billion HKD, reporting a 40% year-on-year increase in total product revenue for Q3 2025 and forming a global strategic partnership with Takeda Pharmaceutical [7] Group 3: Market Trends - There is a continued reduction in holdings of semiconductor stocks, with SMIC (00981) and Hua Hong Semiconductor (01347) experiencing net outflows of 1.38 billion HKD and 628 million HKD, respectively [7] - China Mobile (00941) and Pop Mart (09922) received net inflows of 461 million HKD and 52.96 million HKD, respectively, while Tencent (00700) and Alibaba-W (09988) faced net outflows of 151 million HKD and 955 million HKD [7]

Core Viewpoint - The Hong Kong Stock Connect Innovative Drug ETF (Southern, 159297) has shown significant market activity, with a recent increase of 3.38% and a trading volume of 170 million yuan, indicating strong investor interest in the innovative drug sector [1] Group 1: Market Performance - The Hong Kong Stock Connect Innovative Drug ETF (Southern, 159297) reached a new high in both scale and shares since its inception as of October 31 [1] - The ETF has experienced net inflows for 4 out of the last 5 trading days, totaling 18.9 million yuan [1] - The index it tracks, the National Certificate Hong Kong Stock Connect Innovative Drug Index, rose by 3.67%, with notable increases in component stocks such as Senhwa Biosciences (up 10.11%) and Kanglongda (up 8.80%) [1] Group 2: Policy and Industry Insights - The ongoing negotiations for the National Medical Insurance drug list are complemented by a new commercial health insurance innovative drug directory, aimed at providing new payment channels for high-value innovative drugs [1] - The CAR-T cell drug, Rukiyou Lunsai injection from WuXi AppTec, is making progress in negotiations to be included in the commercial health insurance innovative drug directory, with a listed price of 1.29 million yuan per injection [1] - Open Source Securities notes that the current innovative drugs included in both medical insurance and commercial insurance are in the early stages of volume growth, with potential for rapid revenue increases as policies continue to support innovative drugs [2] Group 3: Institutional Investment Trends - According to Guotou Securities, the proportion of all funds heavily invested in Biotech innovative drug companies has increased to 27.53%, reflecting a 2.61 percentage point rise, indicating growing institutional interest in the innovative drug sector [2] - The increasing allocation of funds to the innovative drug sector suggests a strong market recognition of its long-term development potential [2]

Core Viewpoint - The Hong Kong Innovative Drug ETF (159567) has shown significant growth in both share volume and fund size since its inception, indicating strong investor interest and market performance [1][2]. Group 1: Fund Performance - As of October 31, 2024, the Hong Kong Innovative Drug ETF (159567) closed with a gain of 5.46% and a trading volume of 3.327 billion yuan [1]. - The fund's share volume increased by 1968.65% from 3.95 million shares at the end of 2023 to 81.79 million shares by October 30, 2024 [1]. - The fund's size grew by 1650.00%, from 378 million yuan to 6.612 billion yuan during the same period [1]. Group 2: Liquidity - Over the last 20 trading days, the cumulative trading amount for the fund reached 23.202 billion yuan, with an average daily trading amount of 1.16 billion yuan [1]. - Year-to-date, the cumulative trading amount for the fund is 234.346 billion yuan, averaging 1.172 billion yuan per day over 200 trading days [1]. Group 3: Fund Management - The current fund manager, Ma Jun, has managed the Hong Kong Innovative Drug ETF (159567) since its inception, achieving a return of 64.72% during the management period [2]. - The fund's top holdings include companies such as BeiGene, CanSino Biologics, Innovent Biologics, and others, with significant percentages of the portfolio allocated to these stocks [2].

Core Insights - On October 31, 2025, Alibaba-W (09988), SMIC (00981), and Tencent Holdings (00700) ranked as the top three companies by trading volume in the southbound trading of the Stock Connect, with trading volumes of 58.52 billion, 43.31 billion, and 30.98 billion respectively [1][2] - In the southbound trading of the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), SMIC (00981), and Tencent Holdings (00700) also held the top three positions, with trading volumes of 43.07 billion, 28.25 billion, and 26.32 billion respectively [1][2] Southbound Trading Highlights - **Top Active Companies in Southbound Trading (Hong Kong Stock Connect)** - Alibaba-W (09988): Trading amount of 58.52 billion, net buy of -4.81 billion [2] - SMIC (00981): Trading amount of 43.31 billion, net buy of -78.06 million [2] - Tencent Holdings (00700): Trading amount of 30.98 billion, net buy of -1.72 billion [2] - Xiaomi Group-W (01810): Trading amount of 19.39 billion, net buy of +5.56 billion [2] - Huahong Semiconductor (01347): Trading amount of 18.61 billion, net buy of -1.67 billion [2] - **Top Active Companies in Southbound Trading (Shenzhen-Hong Kong Stock Connect)** - Alibaba-W (09988): Trading amount of 43.07 billion, net buy of +1.15 billion [2] - SMIC (00981): Trading amount of 28.25 billion, net buy of -6.34 billion [2] - Tencent Holdings (00700): Trading amount of 26.32 billion, net buy of -10.47 billion [2] - Huahong Semiconductor (01347): Trading amount of 11.90 billion, net buy of -3.07 billion [2] - Xiaomi Group-W (01810): Trading amount of 11.13 billion, net buy of +904.39 million [2]

Macro Dynamics - In September, the bond market issued a total of 81,027.8 billion yuan in various bonds, including 14,904.9 billion yuan in government bonds, 8,519.1 billion yuan in local government bonds, 11,741.0 billion yuan in financial bonds, 13,407.3 billion yuan in corporate credit bonds, 365.7 billion yuan in credit asset-backed securities, and 31,627.8 billion yuan in interbank certificates of deposit [2] - In September, China's foreign exchange market had a total transaction volume of 26.87 trillion yuan (approximately 3.78 trillion USD), with the interbank market accounting for 22.44 trillion yuan (approximately 3.16 trillion USD) [3] - In the first three quarters, the revenue of large-scale internet and related service enterprises in China reached 14,420 billion yuan, showing a year-on-year growth of 2.8% [4][5] Financial Institutions - China Taiping announced the sale of minority stakes in four companies for a total consideration of 6.5 billion yuan [8] - Hangzhou Bank received approval to issue capital instruments not exceeding 40 billion yuan [9] Market Data - On October 31, A-shares saw a collective decline, with the Shanghai Composite Index down 0.81%, the Shenzhen Component down 1.14%, and the ChiNext Index down 2.31% [11] - The financing balance in the two markets decreased by 7.392 billion yuan, with the Shanghai Stock Exchange reporting a balance of 12,535.78 billion yuan and the Shenzhen Stock Exchange reporting 12,196.92 billion yuan [12] Company Dynamics - China National Petroleum Corporation announced the resignation of Zhou Song as the chairman of the supervisory board [14] - InSai Group decided to terminate a major asset restructuring plan due to changes in the external environment [15] - Tianqi Co., Ltd. signed a strategic cooperation framework agreement with Foxconn Automotive to deploy at least 2,000 embodied intelligent robots over the next five years [17] - Li Auto announced a recall of 11,411 units of the MEGA 2024 electric vehicle due to potential safety hazards [18] - Qingyue Technology is under investigation by the China Securities Regulatory Commission for suspected false financial reporting [19]

Core Insights - The innovative drug sector experienced a significant surge in stock prices, driven by news of the national medical insurance negotiation, with companies like Sanofi and Sihuan Pharmaceutical seeing their stocks hit the daily limit increase [1] - The introduction of the "Commercial Insurance Innovative Drug Directory" mechanism is expected to enhance the market for innovative drugs, allowing for better pricing and payment structures [1] Group 1: National Medical Insurance Negotiation - The 2025 National Medical Insurance negotiation commenced on October 30, introducing the "Commercial Insurance Innovative Drug Directory" for the first time [1] - This directory will include innovative drugs that are not yet part of the basic medical insurance but have high clinical value and significant patient benefits [1] - The development of commercial insurance is deemed essential, with the directory providing guidance for market pricing and optimizing drug price formation mechanisms [1] Group 2: Company-Specific Developments - On October 30, Pfizer registered two global Phase III clinical trials for the PD-1/VEGF bispecific antibody SSGJ-707, developed by Sihuan Pharmaceutical and Sanofi [2] - Pfizer will pay an upfront fee of $1.25 billion and up to $4.8 billion in milestone payments for the global development, production, and commercialization rights of SSGJ-707 [2] - Sanofi holds a 30% stake in the SSGJ-707 project, while Sihuan Pharmaceutical holds 70%, indicating potential future revenue from milestone payments for Sanofi [2] Group 3: Financial Performance - In Q3, Sanofi reported a revenue of 474 million yuan, a year-on-year increase of 38.27%, and a net profit of 209 million yuan, up 101.41% [3] - For the first three quarters, the company achieved a revenue of 1.116 billion yuan, reflecting an 18.80% year-on-year growth, and a net profit of 399 million yuan, a 71.15% increase [3] - The growth in revenue is attributed to licensing income from collaboration projects and an increase in CDMO business, alongside improved management efficiency and reduced expense ratios [3]