Core Viewpoint - The stock price of the innovative drug company, Yaojie Ankang (HK02617), experienced significant volatility, soaring by 63% to a peak of 679.5 HKD per share before plummeting by 53.73% to close at 192.00 HKD on September 16, 2023, resulting in a market capitalization drop to 762 billion HKD from nearly 2700 billion HKD [1][3][5]. Company Overview - Yaojie Ankang is a clinical-stage biopharmaceutical company focused on developing innovative small molecule therapies for cancer, inflammation, and cardiovascular metabolic diseases [5]. - The company currently has no commercialized products and reported zero revenue in the first half of the year, with a loss of 123 million HKD primarily due to R&D and management costs [5]. Stock Performance and Market Reaction - The stock's surge was attributed to the announcement on September 10 that its core product, Tinengotinib, received implied permission for Phase II clinical trials for breast cancer [5]. - Following its IPO on June 23, 2023, at an issue price of 13.15 HKD, the stock's market liquidity is limited, making it susceptible to rapid price changes due to concentrated buying [6][8]. ETF Impact - Yaojie Ankang's inclusion in the Hong Kong Stock Connect on September 8 led to increased buying pressure from multiple innovative drug ETFs, contributing to its rapid price increase [8][9]. - The stock's volatility has affected ETFs tracking the innovative drug index, with Yaojie Ankang accounting for approximately 2.62% of several ETFs, leading to significant passive buying [9][10]. Index Inclusion and Future Considerations - The company was selected for inclusion in several Hang Seng Index series, effective September 8, which has raised concerns about the liquidity and volatility of such a small-cap stock being part of major indices [11][13]. - Industry insiders suggest that adjustments to the index methodology may be necessary to address the liquidity issues associated with Yaojie Ankang's significant price fluctuations [12][13].
0商业产品、上半年0营收，50倍“妖王”大涨大跌，基民也受伤，公司回应称：“公司没有任何回应”