Xuan Gu Bao·2025-07-29 08:38Market Overview - The market showed strong fluctuations throughout the day, with the ChiNext Index leading the gains. The pharmaceutical sector continued to surge, particularly in CRO and innovative drug directions, with companies like Asia-Pacific Pharmaceutical and Zhongsheng Pharmaceutical hitting the daily limit. Other sectors such as CPO and PCB also performed well, with several stocks reaching historical highs. Overall, more than 3,000 stocks in the Shanghai and Shenzhen markets declined, with a total transaction volume of 1.83 trillion [1]. Pharmaceutical Sector - The pharmaceutical sector remained active, with multiple stocks such as Asia-Pacific Pharmaceutical, Chenxin Pharmaceutical, and Foci Pharmaceutical hitting the daily limit. A key catalyst was the announcement from Hengrui Medicine regarding a collaboration with GlaxoSmithKline (GSK) to develop up to 12 innovative drugs, with GSK paying a $500 million upfront fee and potential milestone payments totaling around $12 billion [4][5]. - In the first half of the year, the total amount of license-out transactions for innovative drugs in China approached $66 billion, surpassing the total BD transaction amount for 2024. ADC and bispecific antibodies were significant transaction categories, with expectations for several related BD deals in the second half of the year [6]. - According to data from Yao Pharmaceutical, the number of global pharmaceutical transactions is expected to reach 456 by the first half of 2025, a 32% year-on-year increase, with total upfront payments reaching $11.8 billion, a 136% surge [4]. Optical Communication Sector - The optical communication sector experienced significant gains, with companies like Yunnan Zinc Industry and Woge Optoelectronics hitting the daily limit. Zhongji Xuchuang saw a 9% increase, reaching a historical high [7][8]. - According to market predictions, the global Ethernet optical module market is expected to reach $10 billion in 2024, nearly doubling year-on-year, with a sustained growth rate of around 50% in 2025. The demand is primarily driven by AI data centers, which account for about 80% of the market [8]. Yajiang Hydropower Project - The Yajiang hydropower project concept saw a recovery, with stocks like Tibet Tourism hitting seven consecutive limits. Companies such as Southern Road Machinery and Xining Special Steel also experienced significant gains [10]. - The project involves the construction of five tiered hydropower stations, which will require a substantial amount of mechanized equipment due to the challenging construction conditions in high-altitude and earthquake-prone areas. The estimated static investment for construction machinery is around 120 billion [12].