1. Macro Data Overview - GDP in Q1 2025 increased by 5.4% year-on-year, the same as the previous quarter and higher than the same period last year [1] - In April 2025, the manufacturing PMI was 49.0%, down from 50.5% in the previous month and 50.4% in the same period last year [1] - The non-manufacturing PMI for business activities in April 2025 was 50.4%, down from 50.8% in the previous month and 51.2% in the same period last year [1] - Other economic indicators such as CPI, PPI, and social financing scale also showed corresponding changes [1] 2. Commodity Investment Reference Comprehensive - The central bank will implement a moderately loose monetary policy to support key areas of the real economy [2] - China's latest LPR has been lowered, and major banks have cut deposit and mortgage rates [2] - China's gold and platinum imports reached new highs in April [2] - The EU is considering zero quotas on Russian natural gas imports [2] Metals - The holdings of the world's largest gold ETF increased by 0.57 tons [3] Coal, Coke, Steel, and Minerals - Two coke ovens of Tangshan Guoyi Special Steel Co., Ltd. were shut down [4] Energy and Chemicals - The EU may propose to lower the price cap on Russian seaborne oil [5] - Macquarie Group expects OPEC+ to increase production in July [6] - Turkey discovered a new natural gas field [6] - Abu Dhabi National Oil Company reached agreements with US energy companies [6] - Kazakhstan's oil production increased in May [7] Agricultural Products - China's expected summer grain purchase volume in 2025 is about 200 billion jin [8] - Henan Province will implement policies to support grain production [8] - Gansu Province launched a drought emergency response [9] - South Korean flour mills bought US wheat [10] - Japan will not sacrifice its agriculture in trade agreements [10] 3. Financial News Compilation Open Market - The central bank conducted 357 billion yuan of 7-day reverse repurchase operations, resulting in a net injection of 177 billion yuan [11] - The Ministry of Finance issued treasury cash deposits with lower interest rates [11] Key News - China's LPR and bank deposit rates were lowered [12] - The central bank will support the real economy with a moderately loose monetary policy [12] - Fiscal revenue showed positive growth in April, and expenditure progress was fast [13] - Unemployment rates for different age groups were released [13] - A press conference on science and technology finance policies will be held [13] - The government will continue to support infrastructure and urban renewal projects [14][15] - The financial regulator will study a loan management method for urban renewal projects [14] - The scale of wealth management products exceeded 31 trillion yuan in May [16] - Views on the impact of interest rate cuts on bank net interest margins are divided [17] - Large - denomination certificates of deposit are losing popularity [17] - Insurance companies have raised over 74 billion yuan this year [17] - Japan's central bank's reduction in bond purchases affected the bond market [18] - There were various bond - related events and credit rating adjustments [18][19] Bond Market Summary - Treasury futures mostly declined slightly, and bond yields generally rose [20] - Exchange - traded bonds showed mixed performance [20] - Convertible bond indexes rose, and money market rates mostly declined [21] - Domestic and foreign bond yields showed different trends [23] Foreign Exchange Market - The on - shore RMB depreciated against the US dollar, and the US dollar index declined [24] Research Report Highlights - CICC believes short - end yields may be range - bound, while medium - and long - end yields may decline [25] - Guosheng believes the 4 - month economic data is strong, and mid - term bond rates have room to fall [25] Today's Reminders - Many bonds will be listed, issued, have payments, and pay principal and interest on May 21 [27] 4. Stock Market News - A - shares rose on Tuesday, with small - cap stocks active and the North Exchange 50 and micro - cap indexes hitting new highs [28] - The Hong Kong Hang Seng Index and related indexes rose, with biotech stocks performing strongly [29] - Shengsheng Guojian and Shengsheng Pharmaceutical signed a large - scale cooperation agreement with Pfizer [29][30] - Huaxi Bio responded to the "naming brokerage" incident [30] - Xinhua Insurance will participate in the establishment of Honghu Fund Phase III [30] - Bilibili's Q1 revenue increased, and it achieved profitability [30] - CATL's H - share issuance increased after the over - allotment option was exercised [31]

Group 1 - The core point of the news is that 3SBio has signed a licensing agreement with Pfizer for the PD-1/VEGF bispecific antibody SSGJ-707, valued at over $6 billion, setting a record for upfront payments for domestic bispecific antibodies [1] - Following the licensing agreement, 3SBio's stock price surged nearly 40%, pushing its market capitalization above 50 billion RMB, highlighting the growing prominence of domestic innovative drugs in the global market [1] - The trend of Chinese innovative pharmaceutical companies engaging in license-out agreements to share global market benefits has been on the rise, with 2024 expected to see record highs in transaction amounts and events [1] Group 2 - Dongyang Sunshine Pharmaceutical has also engaged in significant licensing agreements, including granting 3SBio exclusive commercialization rights for a specific indication of a drug, showcasing its increasing recognition in the industry [2] - The company has over 100 drugs in development, including 45 first-class innovative drugs, indicating its strong competitive advantage in key research areas [2] - The drug Iphinidone, currently in clinical phase III, shows potential to become a leading treatment for idiopathic pulmonary fibrosis (IPF), a condition with significant unmet medical needs [4] Group 3 - IPF is a chronic and progressive lung disease affecting approximately 3 million people globally, with limited treatment options and poor prognosis, leading to a growing demand for new therapies [3] - Existing treatments like Esbriet and Ofev have demonstrated substantial sales, reflecting the high unmet need in the IPF market [3] - Dongyang Sunshine's Iphinidone has shown superior efficacy compared to existing treatments and is expected to become a significant player in the IPF market, potentially achieving blockbuster status [4]

Group 1 - On May 20, 2023, 3SBio announced a licensing agreement with Pfizer for its PD-1/VEGF bispecific antibody "SSGJ-707," granting Pfizer exclusive global rights outside mainland China, with a potential total deal value of $60.5 billion, exceeding 430 billion RMB at current exchange rates [1] - The agreement includes a non-refundable upfront payment of $1.25 billion and up to $4.8 billion in milestone payments for development, regulatory approval, and sales, along with a tiered sales royalty based on product sales in licensed regions [1] - Following the announcement, 3SBio's stock surged over 32%, reaching a market capitalization of 46 billion HKD [1] Group 2 - 3SBio's CEO stated that Pfizer's extensive development experience and international perspective will significantly accelerate the global development and commercialization of SSGJ-707, aiming to provide breakthrough treatment options for patients worldwide [2] - The trend of Chinese innovative drugs entering international markets is expanding, with recent agreements such as CSPC's exclusive licensing deal with Cipla for irinotecan liposome injection in the U.S., which includes a $15 million upfront payment and potential total payments nearing $1.1 billion [2] - Data from Yaozhi shows that in 2024, there were 94 completed outbound licensing transactions for Chinese innovative drugs, totaling $51.9 billion, a 26% year-on-year increase, with 41 transactions in the first quarter of 2025 alone, amounting to $36.9 billion, setting new historical highs [2] Group 3 - On May 12, 2023, former President Trump signed an executive order aimed at reducing prescription drug prices in the U.S., suggesting that prices should decrease by at least 59%, with potential reductions of 80% or 90% in certain cases [3] - Guoyuan Securities believes that the push for drug price reductions in the U.S. will not significantly impact the outbound licensing of innovative drugs from China, citing factors such as low prices for generics and intense competition in the U.S. market [3] - The firm anticipates that the pharmaceutical industry will enter a performance vacuum period starting in May, shifting market focus from earnings to fundamental changes in the industry and companies, maintaining a positive outlook on innovative drugs and international expansion [3] Group 4 - Related concept stocks include Cornerstone Pharmaceuticals, which showcased five innovative products at the AACR annual meeting, including a tri-specific antibody and several ADC molecules [4] - Hanyu Pharmaceuticals announced that its selective small molecule CSF-1R inhibitor has been prioritized for review by the Chinese National Medical Products Administration for treating TGCT patients [4] Group 5 - Hengrui Medicine entered a significant strategic collaboration with AstraZeneca, which includes licensing options for two preclinical immunotherapy projects, with Hengrui receiving $175 million in upfront and milestone payments, plus potential royalties based on net sales [5]

Market Overview - Moody's downgrade of the US sovereign credit rating did not significantly impact US stock markets, which opened lower but turned positive, with the Hang Seng Index closing up over 1.49% [1] - The lack of severe market reaction is attributed to previous adjustments in collateral requirements for derivatives and loans, which have shifted from AAA-rated bonds to "government securities" [1] - The ongoing pressure from the US fiscal deficit remains a concern, with the timing of potential repercussions still uncertain [1] Interest Rate Adjustments - The People's Bank of China lowered the 1-year Loan Prime Rate (LPR) to 3.00% and the 5-year LPR to 3.50%, both down by 10 basis points, marking the first reduction of the year [2] - Major state-owned banks followed suit by reducing deposit rates more significantly than the LPR cuts, with 1-year and 5-year deposit rates down by 15 and 25 basis points respectively [2] - Despite the interest rate cuts being generally favorable for real estate stocks, the sector showed little movement due to unchanged mortgage rates and low industry sentiment [2] Investment Trends - The new round of deposit rate cuts may drive funds towards stock markets, bond markets, and wealth management products, although the stock market's attractiveness remains limited due to weak profit potential [3] - Consumer spending may increase, particularly in gold investments, as lower interest rates reduce deposit incentives [3] - The 618 shopping festival is expected to boost online consumption, with significant growth in domestic beauty brands observed during pre-sale events [3] Pet Industry Growth - The pet industry in China is projected to exceed 400 billion yuan by 2027, with a compound annual growth rate of 12.6% from 2015 to 2027, driven by changing social dynamics [4] - Companies like H&H International Holdings reported a 10.4% year-on-year revenue increase, with pet nutrition and care products showing growth [4] Pharmaceutical Sector Developments - A significant partnership between 3SBio and Pfizer involves an upfront payment of $1.25 billion, with potential milestone payments reaching up to $4.8 billion, indicating optimism for innovative drug development [5][6] - The Hong Kong pharmaceutical ETF saw a notable increase, reflecting investor interest in the sector following the announcement of the partnership [6] IPv6 Deployment Policy - The Chinese government aims to establish a leading global IPv6 infrastructure by the end of 2025, with specific targets for user numbers and traffic proportions [7] - The policy emphasizes the importance of IPv6 for various sectors, including government and enterprise, ensuring financial support for implementation [7] Company Performance Highlights - Midea Group reported a 20.61% increase in revenue for Q1 2025, with significant growth in its smart home and industrial technology segments [9][10] - The company is expanding its overseas presence and aims to increase its international revenue share from 43% in 2024 to 50% [10] - Midea's strategic acquisitions and product innovations are expected to enhance its market position and profitability in the coming years [10]

Core Viewpoint - The Hong Kong stock market experienced a significant surge in the biopharmaceutical sector, particularly driven by 3SBio's collaboration with Pfizer, marking a major milestone for Chinese biotech companies [1][3][5]. Group 1: Company Developments - 3SBio announced a global licensing agreement with Pfizer for its innovative PD-1/VEGF bispecific antibody SSGJ-707, excluding China, which includes an upfront payment of $1.25 billion and potential milestone payments of up to $4.8 billion, along with tiered double-digit royalties on net sales [5][7]. - The collaboration is considered the largest licensing deal for a Chinese biotech firm to date, reflecting growing investor confidence in the innovation quality of the industry [1][3]. - Following the announcement, 3SBio's stock surged by over 40%, reaching a historical high of HKD 22, prompting analysts to raise the target price from HKD 13 to HKD 21 [3][7]. Group 2: Industry Trends - The trend of licensing-out models in China's innovative drug sector is rapidly increasing, with significant deals being made, such as the recent agreements between Hengrui Medicine and Merck, and Bayer with Suzhou Purui Medicine [9][10]. - In 2024, the total value of pharmaceutical business development transactions in China reached $64.08 billion, with outbound transactions accounting for $57.75 billion, indicating China's growing importance in the global pharmaceutical market [10]. - The first quarter of 2025 saw 231 global transactions totaling approximately $67.5 billion, with China contributing 75 transactions worth $36.9 billion, reflecting a 34% increase in transaction volume year-on-year [10].

5月20日，港股市场的医药概念股迎来普涨行情，荣昌生物（09995.HK）、石药集团（01093.HK）等多 只个股出现异动上涨。 值得注意的是，三生制药（01530.HK）则是医药概念股中表现最为强劲的，其股价在5月20日一度跳空 飙升逾50%，此后出现回落，最终放量收涨32.28%。而如果从年初算起至今，三生制药更是已经累涨 215.46%。 三生制药大幅异动，也有着消息面的刺激。 和辉瑞签订授权协议，首付款达12.5亿美元 5月20日盘前，三生制药发布公告称，公司、沈阳三生制药有限责任公司（沈阳三生）与辉瑞 （PFE.US）订立许可协议。三生国健（688336.SH）亦将透过加入协议作为签署方加入。 根据协议，三生制药和沈阳三生将向辉瑞授予独家许可，以在全球（不包括中国内地）开发、生产、商 业化及以其他方式开发三生制药自主研发的PD-1/VEGF双特异性抗体SSGJ-707。三生制药及沈阳三生 将保留SSGJ-707在中国内地的开发、制造、商业化及其他开发权。辉瑞将拥有在中国商业化许可产品 的选择权。 根据许可协议，三生制药将获得12.5亿美元的首付款，以及最高可达48亿美元的潜在付款，包括开发、 监管 ...

Core Viewpoint - The record-breaking licensing agreement between 3SBio and Pfizer, valued at up to $60.5 billion, marks a significant milestone for Chinese pharmaceutical companies in the global market [1][2]. Group 1: Company Developments - 3SBio announced an exclusive licensing agreement with Pfizer for its PD-1/VEGF bispecific antibody SSGJ-707, granting Pfizer global rights (excluding mainland China) for development, production, and commercialization [1]. - The agreement includes an upfront payment of $12.5 billion, which sets a new record for upfront payments for Chinese dual antibodies going abroad, along with potential milestone payments of up to $48 billion based on development, registration, and sales [1]. - The drug SSGJ-707 has received breakthrough therapy designation from the National Medical Products Administration for the treatment of locally advanced or metastatic non-small cell lung cancer (NSCLC) with PD-L1 expression [1]. Group 2: Market Impact - Following the announcement, 3SBio's stock surged by 32.28%, while its A-share counterpart, 3SBio Guojian, rose by 19.99%, reflecting heightened investor interest in the innovative drug sector [2]. - Other innovative drug stocks in the Hong Kong market also saw significant gains, with Rongchang Bio up 16.19% and Hansoh Pharmaceutical up 5.74% [2]. - The innovative drug sector's momentum led to increased trading activity in related ETFs, with one ETF recording a transaction volume of 28.28 billion yuan and closing up 5.16% [2]. Group 3: Industry Trends - According to Wanlian Securities, the domestic innovative drug sector is expected to benefit from favorable policies and industry trends, leading to a valuation recovery [3]. - The importance of Chinese pharmaceutical companies is growing in international academic conferences, with many multinational corporations incorporating Chinese products into their core pipelines [3]. - Despite recent market fluctuations due to U.S. drug pricing policies, several domestic brokerages maintain a positive outlook on the growth potential of innovative drug companies in both the Hong Kong and A-share markets [3].

Group 1 - The core point of the news is the significant rise in the innovative drug sector, driven by the announcement of a collaboration between 3SBio and Pfizer, resulting in a $6.05 billion deal, which has positively impacted the entire sector [2] - Following the announcement, 3SBio's stock surged over 35%, creating a ripple effect that boosted the stock prices of other pharmaceutical companies like CSPC Pharmaceutical Group and Innovent Biologics [2] - The innovative drug sector has seen increased trading volume, indicating heightened market activity and investor interest, which could lead to further price increases [4] Group 2 - Market confidence in the innovative drug sector has strengthened due to 3SBio's success, leading investors to believe in the potential for future growth and investment opportunities [5] - The aging population and the growing demand for medication present significant opportunities for the pharmaceutical sector, particularly in innovative drugs combined with AI [6] - The investment strategy suggested includes long-term commitment and regular investments in funds related to the innovative drug sector, as the potential for returns is promising [6][7]

Core Insights - The Hong Kong stock market saw a net inflow of 63.32 billion HKD from northbound trading on May 20, with 43.05 billion HKD from the Shanghai Stock Connect and 20.27 billion HKD from the Shenzhen Stock Connect [1][2] Group 1: Net Inflows and Outflows - The most bought stocks included Meituan-W (03690), China Mobile (00941), and China Construction Bank (00939) [1][2] - The most sold stocks included Xiaomi Group-W (01810), Tencent (00700), and Sanofi (01530) [1][2] Group 2: Individual Stock Performance - Meituan-W (03690) received a net inflow of 12.33 billion HKD, with plans to launch an AI programming tool called "NoCode" aimed at non-technical users [5] - China Mobile (00941) saw a net inflow of 5.5 billion HKD, supported by government initiatives to accelerate 5G-A and 6G technology development [5] - China Construction Bank (00939) had a net inflow of 4.99 billion HKD, following a reduction in deposit rates by major banks [6] - Sanofi (01530) experienced a net outflow of 1.2 billion HKD after a significant stock price increase due to a licensing deal with Pfizer [7] - Other notable net inflows included Kangfang Biopharma (09926) with 4.85 billion HKD and Semiconductor Manufacturing International Corporation (00981) with 2.01 billion HKD [7]

Market Overview - A-shares experienced a broad rally on May 20, with overall market activity increasing and trading volume expanding, as both A-shares and Hong Kong stocks rose over 1% [1] - The three major A-share indices saw significant gains, with the Shanghai Composite Index closing up 0.38% at 3380.48 points, the Shenzhen Component Index up 0.77% at 10249.17 points, and the ChiNext Index up 0.77% at 2048.46 points [1] - The total trading volume in the Shanghai and Shenzhen markets reached 12.114 trillion yuan, an increase of 923 billion yuan compared to the previous day [1] Pet Economy Concept - The pet economy concept surged, with over 3800 stocks in the market showing gains, including Tianyuan Pet (301335) hitting a 20% limit up and reaching a new high, and Lusi Co. (832419) also hitting a limit up [2][4] - The pet market has been maintaining high growth rates, benefiting from domestic brand replacement effects and continuous improvements in product and brand strength, leading to significant year-on-year sales increases [4][6] - Analysts expect the pet sector's performance to continue reaching new highs in 2024 and the first quarter of 2025, driven by stable overseas orders and the growth of domestic pet food brands [6] Innovative Drug Concept - The innovative drug concept saw a strong performance, with significant gains in stocks such as Sangfor Biopharma (01530) which rose over 32%, and other companies like Rongchang Biopharma (688331) and Yifang Biopharma (688382) also experiencing substantial increases [8][10] - Sangfor Biopharma announced a collaboration with Pfizer for the exclusive global development rights of a dual-target antibody, SSGJ-707, which has shown promising results in clinical trials for non-small cell lung cancer [8][10] - The innovative drug sector is expected to benefit from potential changes in international drug pricing strategies, which may position China as a low-cost research and production center [13] Shipping Concept - The shipping sector experienced a significant pullback, with stocks like Guohang Ocean (833171) dropping nearly 18%, and several others hitting the daily limit down [15][16] - Despite the recent downturn, companies like Lianyungang (601008) and Ningbo Ocean (601022) have reassured investors that their operations remain normal and that there are no significant changes in industry policies [17]