Core Viewpoint - Southbound capital saw a significant net inflow today, indicating renewed interest in the Hong Kong market, with the Hang Seng Index rebounding above 23,500 points, suggesting bullish sentiment from various investors beyond just southbound funds [1][2]. Group 1: Southbound Capital Flow - Today's southbound capital transaction amounted to approximately 99.01 billion HKD, accounting for about 43.64% of the total turnover of the Hang Seng Index, showing a recovery in share compared to the previous day but still below the long-term average [1]. - The net inflow of southbound capital was around 4.38 billion HKD, with the Shanghai-Hong Kong Stock Connect contributing approximately 4.19 billion HKD and the Shenzhen-Hong Kong Stock Connect contributing about 0.20 billion HKD [2][6]. Group 2: Individual Stock Performance - Major net purchases included Meituan-W (03690.HK) with 1.04 billion HKD, ZhongAn Online (06060.HK) with 0.76 billion HKD, and CSPC Pharmaceutical Group (01093.HK) with 0.37 billion HKD, indicating strong interest in these stocks [3][4]. - Significant net sales were observed in Semiconductor Manufacturing International Corporation (00981.HK) with 0.56 billion HKD, Xiaomi Group-W (01810.HK) with 0.53 billion HKD, and XPeng Inc. (09868.HK) with 0.48 billion HKD, reflecting a shift in investor sentiment away from these companies [3][4]. Group 3: Stock Price Movements - Meituan-W experienced a price increase of 6.62%, with short-term funds accelerating their inflow, having accumulated 3.12 million shares over the past five days [4]. - ZhongAn Online surged by 31.56%, indicating a strong influx of short-term capital, with 0.77 million shares added in the last five days [4]. - CSPC Pharmaceutical Group rose by 11.73%, with a predominant inflow of short-term funds, accumulating 1.62 million shares over the past five days [4]. - In contrast, Semiconductor Manufacturing International Corporation saw a slight increase of 1.47%, but short-term funds continued to flow out, reducing holdings by 1.11 million shares [4].

作者 | 哥吉拉 数据支持 | 勾股大数 据（www.gogudata.com） 5月29日，A股主要指数高开高走，截至收盘，沪指涨0.7%报3363点，深证成指涨1.24%，创业板指涨1.37%。全市场近4500股上涨，逾百 股涨停。 板块方面，金融科技、创新药、互联网、半导体等热门板块表现强势，市场情绪相比近日明显提振。 其中，创新药是涨幅最明显的板块之一，睿智医药、舒泰神、益方生物强势斩获20CM涨停，另有十多家医药股涨幅均超过10%，堪称又一轮 暴涨潮。 | 代码 | 名称 | 现价 | 1 9 mm a lond a rither more an a many 143 1994 (310 1 涨跌幅▼ | 年初至今涨跌幅 | 总市值1 | | --- | --- | --- | --- | --- | --- | | 300149 | 睿智医药 | 8.56 c | 20.06% | 33.33% | 43亿 | | 300204 | 舒泰神 | 23.04 c | 20.00% | 210.93% | 110亿 | | 688382 | 益元生物-U | 29.10 c | 20.00% | 11 ...

Core Viewpoint - The recent high-value transaction involving the innovative drug SSGJ-707 by 3SBio and Pfizer highlights the growing trend of Chinese biopharmaceutical companies expanding into international markets, despite challenges in the global pharmaceutical environment [2][4]. Group 1: Transaction Details - Pfizer has made a non-refundable upfront payment of $1.25 billion (approximately 9 billion RMB) for the rights to SSGJ-707 outside of China, with potential milestone payments totaling up to $4.8 billion (approximately 34.5 billion RMB) and an additional $100 million for equity subscription [2]. - This transaction sets a record for the upfront payment for a Chinese innovative drug going overseas, indicating a significant shift in the landscape of biopharmaceutical transactions [4]. Group 2: Company Background - 3SBio, established in 1993, is a well-established pharmaceutical company that went public on NASDAQ in 2007 and later privatized before listing on the Hong Kong Stock Exchange in 2015 [3]. - The subsidiary involved in the transaction, 3SBio Guojian, was formerly known as CITIC Guojian and is recognized as one of the earliest companies in China to engage in antibody drug research and sales [3]. Group 3: Market Trends - The trend of Chinese innovative drug companies seeking international partnerships has been growing, with a nearly 40% increase in outbound business development (BD) transactions since 2022, projected to reach around 120 deals worth approximately $63 billion in 2024 [6]. - The stock prices of 3SBio and 3SBio Guojian have surged over 200% and 130%, respectively, following the announcement of this transaction, reflecting strong market interest in innovative drug development [4]. Group 4: Strategic Implications - The increasing trend of "going overseas" is reshaping the clinical research strategies of domestic innovative drug companies, with many now considering international transactions as a key part of their development plans [4]. - The shift from a "me too" model to a focus on first-in-class (FIC) drugs is evident, as domestic companies are increasingly competing head-to-head with multinational pharmaceutical firms [4][5].

Investment Rating - The investment rating for the company is "Buy" [7] Core Insights - The company has entered into a significant licensing agreement with Pfizer for the PD-1/VEGF bispecific antibody (SSGJ-707), which includes an upfront payment of $1.25 billion and potential milestone payments totaling up to $4.8 billion [1][2] - The licensing agreement allows the company to retain development and commercialization rights for SSGJ-707 in mainland China, while Pfizer has the option to commercialize the product in China [1] - The company is expected to see a substantial increase in pre-tax profits due to the upfront payment, estimated at approximately $1.175 billion [2] - SSGJ-707 is currently undergoing multiple clinical studies in China, including a Phase III trial for treating PD-L1 positive locally advanced or metastatic non-small cell lung cancer (NSCLC) [3][6] Financial Projections - The company’s projected revenues for 2025, 2026, and 2027 are estimated to be 185.9 billion, 133.7 billion, and 145.9 billion CNY respectively, reflecting a year-on-year growth of 104.1%, -28.1%, and 18.5% [7][9] - The projected net profit attributable to the parent company for the same years is expected to be 95.9 billion, 53.2 billion, and 60.8 billion CNY, with year-on-year growth rates of 358.7%, -44.5%, and 14.2% [7][9] - The earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 4.00, 2.22, and 2.54 CNY respectively, with corresponding price-to-earnings (PE) ratios of 4.7, 8.4, and 7.3 [7][9] Clinical Development - SSGJ-707 has received IND approval from the FDA and is set to initiate clinical studies in the United States [6] - The product is also involved in several Phase II studies in China, targeting various indications including metastatic colorectal cancer and advanced gynecological tumors [10]

Group 1 - The innovative drug sector is experiencing multiple favorable developments, with the Guotai Innovative Drug ETF (517110) leading the market and showing strong performance [1] - The ASCO annual meeting, a major platform for biopharmaceutical companies to present clinical research results, will take place from May 30 to June 3, 2025, in Chicago, showcasing significant clinical data from domestic innovative drug companies [1] - The inclusion of multiple domestic innovative drug research projects in the ASCO conference reflects the vigorous state of domestic pharmaceutical R&D and the progress made in cancer treatment [1] Group 2 - The Chinese innovative drug industry is rapidly reshaping the international pharmaceutical market, with leading domestic companies expected to achieve record high revenues and net profits in 2024 [2] - As of now, the total transaction amount for domestic innovative drugs reaching overseas has reached $45.5 billion, with upfront payments totaling $2.2 billion, indicating a strong growth trajectory [2] - The retail market for prescription drugs continues to grow steadily, with biological products and innovative drugs being the main drivers, highlighting the increasing penetration of innovative drugs in the market [2] Group 3 - The Chinese innovative drug industry is transitioning from a phase of capital bubble to a stage of genuine achievements, gaining recognition from multinational corporations [3] - The demand for pharmaceuticals is increasing due to rising health awareness and an aging population, creating opportunities for various pharmaceutical sectors [3] - The Guotai Innovative Drug ETF (517110) provides a way to invest in leading stocks within the innovative drug sector, capitalizing on the rapid industry growth [3]

Core Viewpoint - The China Securities Hong Kong Biotechnology Theme Index has shown significant growth, with a year-to-date increase of 41.25% [1] Group 1: Index Performance - The China Securities Hong Kong Biotechnology Theme Index reported a value of 1436.15 points, with a monthly increase of 5.87% and a three-month increase of 12.26% [1] - The index is composed of 50 listed companies in Hong Kong involved in biopharmaceuticals, pharmaceuticals, and biotechnology services, reflecting the overall performance of these companies [1] Group 2: Index Composition - The top ten weighted companies in the index are: BeiGene (14.97%), WuXi Biologics (11.09%), Innovent Biologics (10.93%), CanSino Biologics (6.86%), CSPC Pharmaceutical Group (6.41%), China Biologic Products (5.46%), 3SBio (4.21%), Hansoh Pharmaceutical (3.59%), Zai Lab (2.97%), and WuXi AppTec (2.93%) [1] - The index is fully composed of companies listed on the Hong Kong Stock Exchange, with a 100% allocation [1] Group 3: Industry Breakdown - The industry composition of the index shows that biopharmaceuticals account for 53.76%, chemical drugs for 24.57%, pharmaceutical and biotechnology services for 18.50%, and medical devices for 3.18% [2] - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2]

Market Overview - The A-share market continued to show a sideways consolidation trend, with the Shanghai Composite Index closing at 3340.69 points, down 0.18%, and the Shenzhen Component Index at 10029.11 points, down 0.61% [1] - The total trading volume of the Shanghai and Shenzhen markets was 998.9 billion yuan, ending a streak of 23 consecutive trading days with over 1 trillion yuan in trading volume [1] Food and Beverage Sector - The food and beverage sector showed resilience, with the Shenwan Food and Beverage Index closing up 0.17%. Notably, yellow wine stocks performed exceptionally well, with Kuaijishan and Jin Feng Wine Industry hitting the daily limit, and Guyue Longshan rising over 7% [2] - The China Alcoholic Drinks Association noted that as living standards rise, consumer demand for alcoholic products is becoming more diverse and personalized, particularly for yellow wine, which is recognized for its health benefits and unique taste [2] - The consumption of yellow wine is expected to expand, moving beyond traditional settings to include daily drinking, leisure gatherings, and business banquets, thus becoming a significant part of consumers' daily lives [2] - National Bureau of Statistics data indicated that in April, national catering revenue reached 416.7 billion yuan, a year-on-year increase of 5.2%, providing strong support for stable growth in the consumer market [2] Innovative Pharmaceuticals Sector - The pharmaceutical sector is experiencing a bottom recovery, with innovative drugs showing sustained activity. Notably, Sangamo Therapeutics saw its stock price hit a 20% limit up, closing up 15.31%, with a cumulative increase of 115% over the past seven trading days [3] - On May 20, Sangamo announced a deal with Pfizer, granting exclusive rights for the global development, production, and commercialization of its self-developed PD-1/VEGF bispecific antibody SSGJ-707, excluding the Chinese market, for a record upfront payment of 1.25 billion USD [3] - Analysts believe that this record-setting upfront payment highlights the competitive advantages and market potential of domestic innovative drugs, suggesting a positive cycle of "frontier innovation—commercialization—reinvestment in R&D" for the industry [3] Consumer Sector Trends - The A-share consumer sector is showing signs of rotation, with new consumption areas such as pet consumption and IP economy gaining traction. However, some institutions express concerns about overheating in certain new consumption segments [4] - Recent statistics indicate that leading new consumption companies, such as Pop Mart and Laopu Gold, have shown strong performance, driving market sentiment towards new consumption directions [4] - The beauty and pet food indices have seen their trading volume relative to the entire A-share market reach historical highs, indicating potential overheating in short-term trading indicators [4]

Core Insights - Chinese innovative pharmaceutical company 3SBio has entered a record-breaking License out agreement with Pfizer, potentially worth up to $60.5 billion (approximately 435 billion RMB) [1] - This transaction sets a new record for the amount of a single product going overseas from a Chinese pharmaceutical company and highlights the strong emergence of Chinese innovative drug companies in the global bispecific antibody market [1] Transaction Details - The agreement grants Pfizer the rights to develop, produce, and commercialize 3SBio's self-developed PD-1/VEGF bispecific antibody SSGJ-707 in global markets outside mainland China [2] - Pfizer will pay an upfront fee of $12.5 billion (approximately 90 billion RMB) and up to $4.8 billion in milestone payments, along with a double-digit percentage tiered revenue share from sales in the licensed regions [2] - All payments are non-refundable and non-offsettable, and Pfizer retains the option to commercialize the product in mainland China [2] Product Advantages - SSGJ-707 is developed based on 3SBio's proprietary CLF2 platform, featuring a common light chain symmetrical design and IgG-like structure, which significantly reduces production costs and enhances efficiency [3] - Clinical data shows promising anti-tumor activity and safety: - Objective response rate (ORR) of 70.8% and disease control rate (DCR) of 100% for PD-L1 positive non-small cell lung cancer (NSCLC) [3] - ORR of 81.3% for squamous NSCLC and 58.3% for non-squamous NSCLC, with DCR at 100% when combined with chemotherapy [3] - Adverse event rates for grade 3 or higher treatment-related adverse events (TRAE) range from 8.9% to 23.5%, significantly lower than similar products [3] Market Outlook - The PD-1/VEGF bispecific antibody market is expected to explode, with Evaluate Pharma predicting a global market size exceeding $80 billion by 2030 [5] - Currently, only Kangfang Biotech's Ivosidenib is on the market, and 3SBio's rapid advancement positions it to seize market opportunities [5] Industry Trends - The total value of License out transactions for Chinese innovative drugs reached $51.9 billion in 2024, a year-on-year increase of 27.4%, accounting for 30% of global similar transactions [6] - In the first quarter of 2025, Chinese companies completed 41 overseas transactions totaling over $36.9 billion, with a growing proportion of "heavyweight transactions" [6] - This collaboration further confirms the transition of Chinese innovative drug companies from "followers" to "leaders" in the global market [6] Industry Outlook - This transaction not only brings substantial cash flow to 3SBio but also highlights the maturity of Chinese pharmaceutical companies in target selection, clinical design, and international collaboration [7] - As more original Chinese drugs enter the global market, the "two-way rush" between multinational and Chinese pharmaceutical companies may become the new norm, accelerating the gathering of global pharmaceutical innovation resources in China [7] Conclusion - The collaboration between 3SBio and Pfizer marks a significant milestone for Chinese innovative drugs going global, transitioning from "Made in China" to "Created in China" [8] - With support from policies, capital, and technological breakthroughs, Chinese pharmaceutical companies are entering a golden era of License out, potentially reshaping the global pharmaceutical market landscape [8]

Market Overview - The market experienced fluctuations in the early session, with the ChiNext Index leading the decline. The focus of the market was primarily on the consumer and pharmaceutical sectors [1] ETF Performance - Several ETFs related to innovative drugs saw significant gains, with the Hong Kong Stock Connect Innovative Drug ETF (159570) rising by 2.61% and the Hong Kong Innovative Drug ETF (159567) increasing by 2.22% [2] - The Hong Kong Innovative Drug ETF (513120) also rose over 2%, with a total scale of 95.23 billion, tracking the CSI Hong Kong Innovative Drug Index [5] Investment Logic - The innovative drug industry in China is expected to reach a turning point by 2025, shifting from capital-driven to profit-driven trends, presenting opportunities for both performance and valuation recovery [2] - A new round of technological advancements is anticipated to propel domestic innovative drugs into a new development phase [2] Key Stocks in Innovative Drug Sector - Notable companies in the innovative drug sector include: - Innovent Biologics (信达生物) with a market cap of 885.89 million - BeiGene (百济神州) with a market cap of 2,034.42 million - WuXi Biologics (药明生物) with a market cap of 938.65 million - Other significant players include CanSino Biologics (康方生物), China Biologic Products (中国生物制药), and Hengrui Medicine (翰森制药) [3][6][7] Index Composition - The CSI Hong Kong Innovative Drug Index selects up to 50 listed companies involved in innovative drug research and development, reflecting the overall performance of the innovative drug sector in the Hong Kong market [5][6]

Core Viewpoint - The Chinese innovative pharmaceutical sector is gaining international recognition, highlighted by significant deals and promising clinical data, leading to increased interest in related ETFs [1][3][4]. Group 1: Market Performance - The innovative drug ETF (517110) has rebounded nearly 15% since early April, reflecting strong performance in the pharmaceutical sector [1]. - The biopharmaceutical ETF and vaccine ETF also showed positive movements, with respective increases of 1.17% and 0.89% [2]. Group 2: ASCO Conference Insights - At the 2025 ASCO conference, over 70 research outcomes from Chinese pharmaceutical companies were presented, showcasing advancements in ADC and bispecific antibody technologies [3]. - Notable performances include Zai Lab's ZG005 and Huahai Pharmaceutical's HB0025, which exceeded expectations in early clinical trials for cervical and endometrial cancers, respectively [3]. Group 3: Business Development Trends - Recent business development (BD) activities in the innovative drug sector have seen record-breaking upfront payments, such as the $12.5 billion upfront payment from Pfizer for a PD-1/VEGF bispecific antibody from 3SBio [4][7]. - The increase in upfront payments and total deal values indicates growing international recognition of Chinese innovative drugs [7]. Group 4: Future Outlook - The innovative drug sector is expected to benefit from ongoing BD transactions, advancements in artificial intelligence across the pharmaceutical value chain, and the implementation of new healthcare policies [7]. - The overall sentiment and valuation in the pharmaceutical sector may improve due to domestic policy optimizations and a recovery in medical equipment procurement [7].