Group 1 - The core viewpoint of the article highlights a significant rally in Hong Kong's innovative drug concept stocks, with notable increases in companies such as WuXi AppTec (2268.HK), which rose by 5.5% to HKD 68.75, marking its fourth consecutive day of gains [1] - Other companies in the sector also experienced substantial increases, including 3SBio, which rose over 7%, WuXi Biologics, which increased over 6%, Innovent Biologics, which gained nearly 6%, and WuXi AppTec, which saw a nearly 5% rise, all achieving their fourth consecutive day of growth [1] - According to a report by CMB International published in December, the trend of innovative drugs going overseas is expected to continue in the long term, with a focus on the clinical progress and data validation of pipelines that have already gone abroad as a key catalyst [1] Group 2 - On the policy front, the U.S. Biodefense Act has been signed into law; however, its impact on Chinese CXO companies is expected to be limited due to its non-coverage of Medicaid and Medicare procurement and clear definitions of related parties, as well as the relatively small proportion of revenue from U.S. administrative agencies for Chinese CXOs [1] - The industry outlook from CMB International indicates a more conservative investment approach, focusing on undervalued stock opportunities, with recommendations to buy 3SBio, Genscript Biotech, WuXi AppTec, and China National Pharmaceutical Group [1]

Core Insights - The "Bet on China" top ten core asset portfolio launched by the company has shown strong performance, with a 3.6% increase on January 5, 2026, outperforming the Shanghai Composite Index and Hang Seng Index [1] - The portfolio has continued to rise, with a 2.65% increase on January 6, 2026, further exceeding the performance of major indices [1] - Year-to-date, the portfolio has accumulated a 6.14% increase, significantly surpassing the Shanghai Composite Index's 2.89% and Hang Seng Index's 4.29% [1] Company Performance - Alibaba-W (HK09988) saw a total increase of 7.0% over two trading days [1] - China Ping An (SH601318) increased by 5.8% [1] - WuXi AppTec (HK02268) rose by 4.4% [1] - Tencent Holdings (HK00700) increased by 4.3% [1] - Trip.com Group-S (HK09961) rose by 4.1% [1] - Oriental Fortune (SZ300059) increased by 2.5% [1] - Zhongji Xuchuang (SZ300308) rose by 2.2% [1] - Luoyang Molybdenum (SH603993) increased by 2.2% [1] - Gold ETF (SH518880) rose by 2.1% [1] - Wanhua Chemical (SH600309) increased by 0.9% [1] Future Outlook - The strong performance of core assets is attributed to the company's deep insights into industry trends and the economic pulse of China [2] - The company aims to continue identifying quality assets in the context of China's economic transformation, providing investors with precise asset allocation references [2] - The recent performance is seen as just the beginning of the value release of the core assets [2]

Core Viewpoint - The article emphasizes the strong performance of the "Betting on China" top ten core asset portfolio, which has significantly outperformed major indices, showcasing the effectiveness of the research institute's asset selection strategy [2][3]. Performance Summary - As of January 5, 2026, the "Betting on China" portfolio increased by 3.6%, outperforming the Shanghai Composite Index's 1.4% and the Hang Seng Index's 2.8% [3]. - Year-to-date, the portfolio has risen by 6.14%, surpassing the Shanghai Composite Index's 2.89% and the Hang Seng Index's 4.29% [3][4]. - Notable individual performances include Alibaba (+7.0%), China Ping An (+5.8%), and WuXi AppTec (+4.4%) from January 2 to 5, 2026 [3][4]. Asset Selection - The core assets selected include: - Zhongji Xuchuang (AI computing/advanced manufacturing) with a market cap of 6,778 million RMB - Tencent (AI applications) with a market cap of 49,160 million RMB - Alibaba (AI/cloud computing) with a market cap of 24,500 million RMB - China Ping An (finance) with a market cap of 12,400 million RMB - WuXi AppTec (pharmaceuticals) with a market cap of 15,151 million RMB [2]. Future Outlook - The strong performance at the beginning of the year is seen as just the start of the value release of the core assets, with the research institute committed to identifying quality targets in China's economic transformation [6].

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年12月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: WuXi XDC Cayman Inc. 藥明合聯生物技術有限公司*（「本公司」） *僅供識別 呈交日期: 2026年1月5日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02268 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | USD | 0.00005 | USD | | 500,000 | | 增加 / 減少 (-) | | | | | | USD | | | | 本月底結存 | | | 10,000,000,000 | USD | 0.00005 | ...

Core Insights - The 2026 "Bet on China" top ten core assets have been announced by Gelonghui, a well-known independent research institution in China, based on votes from millions of members across over 70 countries [1][3] - The selection process involved over half a month of voting, resulting in hundreds of thousands of valid votes, emphasizing the collective wisdom of global investors [3] Selection Criteria - The selected listed companies must meet four key principles, reflecting the uncertainties in the Chinese investment market for 2025, including fluctuating recovery expectations, real estate stability concerns, and the ambiguity in investment directions related to AI and new energy [2] Performance Metrics - Since the end of 2018, the "Bet on China" top ten core assets index has achieved a cumulative increase of 318.67%, significantly outperforming the CSI 300 index (+56.2%), Hang Seng index (-0.82%), and S&P 500 index (+175.3%) [3] - In 2025, the equal-weighted return of the top ten core assets reached 35.1%, again surpassing the CSI 300 index (+17.7%), Hang Seng index (+27.8%), and S&P 500 index (+17.3%) [3] Core Assets Overview 1. **Zhongji Xuchuang (300308)**: Expected to benefit from the acceleration of AI computing infrastructure in China, with a projected demand for optical modules reaching 18 billion yuan, and a 50% annual growth in domestic demand for 800G optical modules [5] 2. **Tencent Holdings (00700.HK)**: With a massive user base, Tencent is expected to see its advertising revenue exceed 40 billion yuan in 2026, driven by its social media platforms and AI efficiency improvements [6][7] 3. **Alibaba (09988.HK)**: Anticipated to achieve 170 billion yuan in revenue from cloud services, with a growth rate of 34%, while also focusing on domestic consumption upgrades [7][8] 4. **Gold ETF (518880)**: Positioned as a key hedging tool for domestic investors, with a forecasted gold price potentially reaching 5,000 USD per ounce, supported by liquidity and geopolitical factors [8] 5. **Luoyang Molybdenum (603993/03993.HK)**: Expected to produce 660,000 tons of copper and 120,000 tons of cobalt in 2026, benefiting from the growth of the domestic electric vehicle market [9] 6. **Ping An Insurance (601318/02318.HK)**: Projected to see a 20%-25% increase in market value, benefiting from the domestic interest rate cycle and a focus on quality equity assets [10] 7. **Dongfang Caifu (300059)**: Anticipated to see a 22%-28% growth in market value, driven by increased capital market activity and AI-driven wealth management services [11] 8. **Wanhua Chemical (600309)**: Expected to achieve a net profit of 15.5-16.2 billion yuan in 2026, supported by domestic demand for MDI and new materials [12] 9. **WuXi AppTec (02268.HK)**: Positioned as a leader in the ADC field, with over 60% of its pipeline serving domestic clients, reflecting the growth of China's biopharmaceutical industry [13] 10. **Trip.com Group (09961.HK)**: Projected to see a revenue growth of over 25%, benefiting from the recovery of domestic travel and tourism [14] Conclusion - The ten core assets are aligned with China's key sectors such as AI computing, new energy, consumption, finance, and biomedicine, reflecting the country's new productive forces and upgrading of livelihoods [14]

Core Insights - The article presents the "Top 10 Core Assets for 2026" as voted by millions of members from over 70 countries, highlighting the collective wisdom of global investors in navigating market uncertainties [2][5]. Summary by Categories Core Assets - The selected core assets include: - **Zhongji Xuchuang (中际旭创)**: Market cap of 6,778 million RMB, focusing on AI and advanced manufacturing [3] - **Tencent (腾讯)**: Market cap of 49,160 million RMB, centered on AI applications [3] - **Alibaba (阿里巴巴)**: Market cap of 24,500 million RMB, involved in AI and cloud computing [3] - **Gold ETF (黄金ETF)**: Market cap of 1 million RMB, categorized under precious metals [3] - **Luoyang Molybdenum (洛阳钼业)**: Market cap of 4,279 million RMB, with no specific industry listed [3] - **China Ping An (中国平安)**: Market cap of 12,400 million RMB, in the financial sector [3] - **Dongfang Caifu (东方财富)**: Market cap of 3,663 million RMB, with no specific industry listed [3] - **Wanhua Chemical (万华化学)**: Market cap of 2,400 million RMB, in the chemical industry [3] - **WuXi AppTec (药明合联)**: Market cap of 1,515 million RMB, in the pharmaceutical sector [3] - **Trip.com Group (携程集团)**: Market cap of 3,250 million RMB, in consumer discretionary [3] Market Context - The investment landscape in China for 2025 is characterized by uncertainties, including fluctuating recovery expectations, geopolitical tensions, and evolving trends in real estate and AI [4]. - The article emphasizes the importance of collective intelligence in investment decisions, asserting that the aggregated insights from millions can effectively guide investors through market complexities [5][7]. Performance Metrics - From 2019 to 2025, the "Top 10 Core Assets Index" achieved a cumulative growth of 318.67%, significantly outperforming the CSI 300 Index (+56.2%) and the Hang Seng Index (-0.82%) [11]. - In 2025, the equal-weighted return of the top assets reached 35.1%, again surpassing the performance of major indices [11]. Selection Criteria - The selected companies must meet four key principles: 1. Represent Chinese enterprises with a domestic market focus 2. Align with future economic directions and create long-term value 3. Possess competitive advantages or potential in emerging sectors 4. Have a projected market cap growth of 20% or more in 2026 [10] Individual Company Insights - **Zhongji Xuchuang**: Expected to benefit from a surge in AI-related demand, with a projected market cap growth of 25%-30% [12]. - **Tencent**: Anticipated to see a 25%-30% increase in adjusted net profit, driven by its strong domestic user base and advertising revenue [13]. - **Alibaba**: Forecasted to achieve a 25%-28% stock price increase, supported by its dual focus on AI and consumer markets [14]. - **Gold ETF**: Positioned as a key hedging tool, with a projected 28%-32% growth in fund inflows [15]. - **Luoyang Molybdenum**: Expected to maintain its leading position in the battery materials sector, with a projected net profit of 320-350 million RMB [16]. - **China Ping An**: Anticipated to grow its market cap by 20%-25%, benefiting from the domestic financial market's recovery [17]. - **Dongfang Caifu**: Projected to see a 22%-28% increase in market cap, driven by the growth in wealth management services [18]. - **Wanhua Chemical**: Expected to achieve a net profit of 155-162 million RMB, supported by domestic demand [19]. - **WuXi AppTec**: Positioned as a leader in the ADC field, with significant growth driven by domestic innovation [20]. - **Trip.com Group**: Forecasted to grow revenue by over 25%, capitalizing on the recovery of domestic travel [21]. Conclusion - The selected core assets reflect a strategic alignment with China's economic growth and key sectors, including AI, renewable energy, finance, and healthcare, emphasizing their potential for long-term value creation [22].

Core Viewpoint - The innovative pharmaceutical sector is expected to perform well in 2026, driven by strong business development (BD) activities and supportive industrial policies, despite recent market adjustments [1][4]. Group 1: Market Performance - The Hong Kong innovative drug index has seen a year-to-date increase of nearly 70%, with individual stocks like Shuyou Shen and Sanofi Biopharma doubling in price [1][2]. - In the A-share market, stocks such as Shuyou Shen and Sanofi Biopharma have also experienced significant gains, with Shuyou Shen's price soaring nearly 7 times at one point [2]. - The Hong Kong stock market has welcomed over 20 pharmaceutical companies this year, with notable first-day performances, including a nearly 300% increase for Yinnuo Pharmaceutical [2][3]. Group 2: Business Development (BD) Trends - The number of BD projects in the Chinese innovative drug sector reached 166 by December 5, 2025, marking an increase of 54 projects from the previous year [4]. - The total amount of BD transactions has reached $141.97 billion, a growth of over 136.8% compared to 2024, with upfront payments totaling $6.3 billion, up by over 199% [4][5]. - Major deals include a $13 billion transaction between Qiguang Dekang and Biohaven, and a collaboration between Sanofi Biopharma and Pfizer worth up to $48 billion [4][5]. Group 3: Future Outlook - Analysts predict that the innovative drug sector will continue to thrive in 2026, with a shift in focus from quantity to value in BD transactions [7]. - The industry is expected to see a selection of high-quality companies emerge as leaders, supported by a stable policy environment and improved market confidence [7][8]. - The innovative drug sector is anticipated to remain a core focus within the pharmaceutical industry, with significant benefits expected for related sectors such as CXO [7][8].

Core Viewpoint - The Hong Kong pharmaceutical market is experiencing a downturn, with the Hong Kong Stock Connect Innovation Drug ETF (159570) declining by 1.14% and over 25% from its previous high, despite a significant trading volume of over 1.44 billion yuan [1][4]. Group 1: Market Performance - The Hong Kong Stock Connect Innovation Drug ETF (159570) has seen a three-day decline, reaching a new low, with a total trading volume exceeding 14.4 billion yuan [1]. - As of December 29, the latest scale of the Hong Kong Stock Connect Innovation Drug ETF (159570) is over 21.9 billion yuan, leading among its peers [1]. - Major stocks within the ETF, such as King’s Bio and Kelun-Bio, have experienced declines, with King’s Bio dropping over 3% [4][5]. Group 2: IPO Activity - On December 30, Insilico Medicine, a generative AI-driven biopharmaceutical company, successfully listed on the Hong Kong Stock Exchange, marking it as the first AI biopharmaceutical company to do so under the main board listing rules [3]. - The IPO raised a total of 2.277 billion Hong Kong dollars, making it the highest fundraising biopharmaceutical IPO in Hong Kong for the year [3]. Group 3: Industry Trends - The upcoming J.P. Morgan Healthcare Conference in January 2026 is expected to attract over 8,000 global participants, featuring more than 500 listed companies and thousands of startups, focusing on "capital + strategy" discussions [6]. - Key trends highlighted for the industry include the continued rise of gene and cell therapies, deep integration of AI in pharmaceuticals, and the emergence of new market forces from China [7]. Group 4: Investment Insights - Multinational corporations (MNCs) are willing to pay higher prices for innovative drugs and technology platforms from China, with average total deals from China reaching 2.756 billion USD compared to 1.289 billion USD from overseas [8]. - The pressure from patent expirations, estimated at around 300 billion USD in sales, is driving MNCs to seek high-potential assets in China, particularly in advanced fields like ADCs and cell therapies [9]. - MNCs are shifting their focus from merely acquiring products to obtaining platforms and technologies that can yield new molecules, indicating a strategic evolution in their investment approach [10]. Group 5: Key Investment Areas - Key investment areas include ADCs, GLP-1 for metabolic diseases, bispecific antibodies, and neuroscience, with a focus on companies that can deliver competitive clinical data and innovative platforms [12][13].

Investment Rating - The report maintains an "Outperform" rating for several companies in the pharmaceutical sector, including Jiangsu Heng Rui Medicine, Hansoh Pharmaceutical Group, 3SBio, Sichuan Kelun Pharmaceutical, and Jiangsu Nhwa Pharmaceutical [5][6]. Core Insights - The report emphasizes the high prosperity in innovative drugs and continues to recommend companies with promising pipelines and performance growth in the Biopharma/Biotech sector, maintaining an "Outperform" rating for Innovent Biologics, WuXi XDC Cayman, and others [5][23]. - It highlights the performance of the A-Shares pharmaceutical sector, which underperformed the market, with the SW Pharma & Bio index falling by 0.2% while the SHCOMP rose by 1.9% [7][18]. - The report notes that the premium level of the pharmaceutical sector relative to all A-Shares is currently at a normal level of 66.7% as of December 26, 2025 [13][17]. Summary by Sections 1. Continued Recommendation for Innovative Drugs and Industry Chain - The report continues to recommend innovative drugs and the associated industry chain, highlighting the high demand and potential for revaluation in the pharmaceutical sector [5][23]. - Specific companies recommended include Jiangsu Heng Rui Medicine, Hansoh Pharmaceutical Group, 3SBio, Sichuan Kelun Pharmaceutical, and Jiangsu Nhwa Pharmaceutical, all rated as "Outperform" [5][6]. 2. A-Shares Pharmaceutical Sector Performance - In the fourth week of December 2025, the A-Shares pharmaceutical sector underperformed the broader market, with a decline of 0.2% compared to a 1.9% increase in the SHCOMP index [7][18]. - The best-performing sub-sectors included chemical raw materials (+2.0%) and medical equipment (+0.1%), while biological products saw a slight decline of -0.1% [9][18]. 3. Hong Kong and U.S. Market Performance - The Hong Kong pharmaceutical sector also underperformed, with the Hang Seng Healthcare index down by 1.8% and the Hang Seng Biotechnology index down by 2.3% [18]. - In contrast, the U.S. pharmaceutical sector performed similarly to the market, with the S&P Healthcare Select Sector increasing by 1.0% [18].

Summary of Conference Call Records Industry Overview - The pharmaceutical sector is experiencing structural heat, with certain stocks entering a value range, indicating potential for rebound. The focus for 2026 includes three main narratives: innovation going global, turnaround from difficulties, and impulse-driven growth, particularly in BD 2.0, small nucleic acids, and supply chains [1][2] Key Insights and Arguments - The CRO (Contract Research Organization) industry has seen short-term risks largely mitigated, with limited impact from the U.S. NBA 2026 Act. The CRO supply chain is expected to experience a resonance of internal and external demand starting in 2024, leading to a strong fundamental outlook by 2026 [1][4] - In the clinical CRO space, companies like Tigermed are showing significant order growth, with EPS expected to experience nonlinear growth, enhancing stock price elasticity. The peptide CDMO (Contract Development and Manufacturing Organization) sector is also expected to grow at least 25% by 2026, with companies like WuXi AppTec and Notch being noteworthy [1][4][5] - CDMO companies are driven by large product orders, with ADC (Antibody-Drug Conjugates) and small nucleic acids identified as key future growth areas. ADC commercialization is entering a boom phase, benefiting companies like WuXi Biologics, Haoyuan, and Kelaiying [1][6] Additional Important Content - The Ant Group's healthcare model, Antifufu, aims to become a leading health service consultation platform, targeting 500 million registered users and over 100 million monthly active users by the end of 2026. The healthcare team has been elevated to a business group, aiming for revenue exceeding 100 billion [2][7] - Antifufu's technology is based on the "Bailing" general model, integrating Deepseek and Tongyi Qianwen technologies, utilizing proprietary medical data from various sources, including 700 million medical insurance users and 40,000 doctors from acquired platforms [2][8] - User retention strategies for Antifufu include health goal setting and integration with wearable devices, aiming for increased interaction frequency [2][9] - The commercialization strategy includes paid consultations, medication purchases, and health membership services, with B2B collaborations with insurance companies for disease-specific insurance products [2][10] - Collaboration with Alibaba Health leverages a vast user base and medical data, enhancing competitive advantages in the healthcare sector [2][11] - The AI-powered "Famous Doctor Avatar" service is currently in a testing phase, with plans for monetization contingent on achieving high diagnostic accuracy [2][12]