Core Viewpoint - The pharmaceutical sector is experiencing a decline, with significant drops in stock prices for various companies, while there is an increasing trend in domestic investment through the Hong Kong Stock Connect, indicating a mixed sentiment in the market [1]. Group 1: Stock Performance - Notable declines in pharmaceutical stocks include: - Innovent Biologics (09969) down 11.37% to HKD 14.73 - Sanofi (02257) down 11.05% to HKD 13.36 - Rongchang Biopharmaceutical (09995) down 10.4% to HKD 95.15 - Galenica (01672) down 8.57% to HKD 9.6 - Viatris (01873) down 8.14% to HKD 2.82 [1]. Group 2: Investment Trends - According to CICC, since September, the proportion of domestic investors holding pharmaceutical stocks through the Hong Kong Stock Connect has been increasing, while foreign investment has slightly decreased since mid-year [1]. - Despite the decline, the overall trend of increasing investment in innovative drugs remains unchanged [1]. Group 3: Future Outlook - The upcoming ESMO conference in mid-October is highlighted as a key event, with recommendations to focus on companies like CanSino Biologics, Kelun-Biotech, Rongchang Biopharmaceutical, and Heng Rui Medicine, which are expected to release significant data [1]. - Dongguan Securities reports that the pharmaceutical and biotechnology sector has underperformed compared to the CSI 300 index, with some previously high-performing innovative drug companies experiencing corrections [1]. - The medical research outsourcing sector is showing strength due to improved financing data and expectations of catalysts in innovative drugs, suggesting potential investment opportunities [1].