Group 1 - The CRO sector is under pressure, with notable declines in stock prices: Kanglong Chemical down 4.32% to HKD 21.24, Zhaoyan New Drug down 3.29% to HKD 21.16, Kylin Pharmaceutical down 2.31% to HKD 78.15, and Weiya Bio down 1.98% to HKD 1.98 [1][1][1] - The revised U.S. Biodefense Law, part of the 2026 National Defense Authorization Act (NDAA), has passed the Senate with a vote of 77 to 20 and is expected to be signed by the President, completing the legislative process [1][1][1] - According to Cinda Securities, the Biodefense Law has been a significant factor in suppressing the valuation of the CXO sector over the past two years, but the final version is relatively moderate compared to the initial draft, as it does not specifically name companies [1][1][1] Group 2 - With the Federal Reserve entering a rate-cutting cycle, global biopharmaceutical investment and financing are expected to improve marginally [1][1][1] - The implementation of the Biodefense Law is anticipated to lead to a dual recovery in both performance and valuation for the CXO sector [1][1][1]