Group 1 - The Hang Seng Index rose by 0.04%, gaining 11 points to close at 26,840 points, while the Hang Seng Tech Index increased by 0.63% [1] - Shanghai Electric (601727) surged by 15.72%, hitting the upper limit in A-shares, driven by recent positive developments in the controllable nuclear fusion sector [1] - Hua Hong Semiconductor (01347) climbed 6.75%, reaching a new high as local supply chain integration accelerates, with domestic foundry demand expected to expand rapidly [1] - Jiangxi Copper (600362) shares rose by 11%, as the company is a leading copper smelter in China, with First Quantum's copper mine expected to resume production [1] - Luoyang Molybdenum (603993) increased by 8%, following a significant rise in cobalt prices, which surged over 11% in the previous two days due to strict export controls from the Congo [1] Group 2 - Hang Seng Bank (00011) saw a 26% increase, following HSBC's recommendation for its privatization [2] - Solar energy stocks experienced gains, with upstream prices rising more than downstream prices in September; New Special Energy (01799) rose 4.52%, Flat Glass (601865) increased by 7.67%, and GCL-Poly Energy (03800) gained 3.73% [2] - High-speed rail infrastructure stocks led the gains, with record railway investment progress; China Railway (601390) rose 9%, China Metallurgical Group (601618) increased by 6%, and CRRC Corporation (601766) gained 4.17% [2] - ZTE Corporation (00763) saw both A and H shares rise, with the launch of Co-Sight super intelligent system indicating positive growth potential in the enterprise AI market; H shares increased by 10.73% [2] Group 3 - Mixue Group (02097) rose 8.96% despite market trends, as it made a forward-looking investment in fresh beer brand Fulu, expanding its "tea + coffee + fresh beer" portfolio [3] - The Hang Seng Biotechnology Index fell by 3.52%, with notable declines in stocks such as Innovent Biologics (09969) down over 9%, I-Mab (01801) down over 6%, and China Biologic Products (01177) down over 6% [3] Group 4 - Smoore International (06969) dropped over 9%, having fallen more than 30% from its year-to-date high, with UBS projecting lower earnings than market consensus [4]

Group 1 - Hong Kong's Hang Seng Index rose by 0.04%, gaining 11 points to close at 26,840 points, while the Hang Seng Tech Index increased by 0.63% [1] - Shanghai Electric (02727) surged by 15.72%, with its A-shares hitting the daily limit, driven by positive developments in the controllable nuclear fusion sector [1] - Huahong Semiconductor (01347) climbed 6.75%, reaching a new high as domestic supply chain localization accelerates, with local foundry demand expected to expand rapidly [1] - Jiangxi Copper (00358) increased by 11%, being a leading copper smelting company in China, with a potential resumption of production at a copper mine owned by First Quantum [1] - Luoyang Molybdenum (03993) rose by 8%, as cobalt prices surged over 11% in the previous two days due to strict export controls in the Democratic Republic of Congo [1] - Hang Seng Bank (00011) jumped 26% following HSBC's recommendation to privatize the bank [1] - Solar stocks saw gains in early trading, with prices in the photovoltaic industry chain continuing to rise in September, particularly in upstream sectors [1] - High-speed rail infrastructure stocks led the gains, with record railway investment progress and the initiation of the "14th Five-Year" railway development planning [1] Group 2 - ZTE Corporation (00763) saw both A and H shares rise, with the overseas debut of its Co-Sight super intelligent system indicating positive growth potential in the enterprise AI market [2] Group 3 - Mixue Group (02097) rose 8.96% despite market trends, making a forward-looking investment in fresh beer brand Fulu, expanding its "tea + coffee + fresh beer" portfolio [3] - The Hang Seng Biotechnology Index fell by 3.52%, with several constituent stocks like Innovent Biologics (09969) and Sino Biopharmaceutical (01177) experiencing declines of over 6% [3] - Smoore International (06969) dropped over 9%, having fallen more than 30% from its yearly high, with UBS projecting lower earnings than market consensus [3]

Market Overview - The A-share market experienced a strong opening on the first trading day after the National Day and Mid-Autumn Festival holidays, with all three major indices rising. The Shanghai Composite Index increased by 0.65%, surpassing 3900 points, marking a new 10-year high [1][2] - The Shenzhen Component Index and the ChiNext Index both rose over 1% [1] Sector Performance - The opening saw a collective surge in the non-ferrous metals and gold sectors, with notable stocks such as Shandong Gold and Sichuan Gold reaching new highs. The gold stock ETFs also saw significant gains, with one ETF rising by 7.43% and another by 9.64% [7][8] - Other sectors such as media and entertainment, transportation services, and tourism experienced pullbacks [2] Monetary Policy - The People's Bank of China conducted a 7-day reverse repurchase operation amounting to 612 billion yuan, maintaining the operation rate at 1.40% [3] Hong Kong Market - The Hong Kong market opened high but saw a decline, with the Hang Seng Index and Hang Seng Tech Index both experiencing a drop of over 1%. The innovative drug sector faced significant pullbacks, with several companies dropping more than 5% [5] Gold Market Insights - The spot gold price surpassed $4000 per ounce, reaching a historical high, while COMEX gold futures rose by 1.42% to $3862.9 per ounce. The gold market is believed to be entering a "third wave" of price increases, driven by various geopolitical and economic factors [9][8] Nuclear Fusion Sector - The controlled nuclear fusion concept saw a strong rally, with several companies experiencing significant stock price increases. Recent advancements in fusion energy projects in China are contributing to positive market sentiment [11] Future Market Outlook - Several brokerages are optimistic about the overall market performance in the fourth quarter, highlighting a focus on technology sectors and specific cyclical stocks. The report suggests that technology growth will continue to be a key driver, with particular attention to AI applications and semiconductor manufacturing [12]

每经AI快讯，10月9日，港股生物医药股普跌，其中，诺诚健华跌超11%，荣昌生物跌超9%，科伦博泰 生物-B跌超7%，泰格医药、药明合联跌超6%，康方生物跌超5%。 ...

Core Viewpoint - The Hong Kong biopharmaceutical sector experienced a significant decline, with major companies reporting substantial drops in stock prices, indicating a bearish trend in the market [1]. Group 1: Stock Performance - Innovent Biologics (099660) saw a decline of 11.54%, with a latest price of 16.640 and a market capitalization of 293.36 billion, despite a year-to-date increase of 171.90% [2]. - Rongchang Biologics (09995) dropped by 9.20%, priced at 108.600, with a total market value of 612.08 billion, and a remarkable year-to-date increase of 654.17% [2]. - Kelun-Biotech (06990) fell by 7.71%, with a latest price of 533.000 and a market cap of 1,242.88 billion, while still showing a year-to-date increase of 226.39% [2]. - Tigermed (03347) decreased by 6.86%, priced at 43.960, with a market capitalization of 378.51 billion and a year-to-date increase of 44.25% [2]. - WuXi AppTec (02268) experienced a decline of 6.22%, with a latest price of 77.650 and a market cap of 954.09 billion, maintaining a year-to-date increase of 153.34% [2]. - CanSino Biologics (09926) dropped by 5.15%, priced at 134.500, with a market capitalization of 1,238.94 billion, and a year-to-date increase of 121.58% [2]. - Other companies like Junshi Biosciences (01877) and BeiGene (06160) also reported declines, with respective decreases of 3.16% and 2.48% [2].

Core Insights - 诺诚健华 and Zenas BioPharma have entered into a licensing agreement for the global development and commercialization rights of 奥布替尼 in multiple sclerosis and other non-oncological indications [1][2] - Zenas will pay up to $100 million in upfront and milestone payments, with total transaction value exceeding $2 billion [1][2] - 奥布替尼 is a potential best-in-class oral BTK inhibitor with strong CNS penetration, currently undergoing clinical trials for multiple sclerosis [2][3] Group 1 - Zenas will receive exclusive global rights for 奥布替尼 in multiple sclerosis and non-oncological indications outside Greater China and Southeast Asia [2] - 诺诚健华 retains global rights for 奥布替尼 in oncology and in non-oncological indications within Greater China and Southeast Asia [2] - Zenas also gains rights to a novel oral IL-17 AA/AF inhibitor and a CNS-penetrant oral TYK2 inhibitor [1][2] Group 2 - A Phase III clinical trial has been initiated to evaluate the safety and efficacy of 奥布替尼 in primary progressive multiple sclerosis patients [2] - Zenas plans to start a second Phase III trial for secondary progressive multiple sclerosis in Q1 2026 [2] - In a previous Phase II trial, 奥布替尼 significantly reduced the number of new Gd+ T1 MRI brain lesions compared to placebo, demonstrating sustained reduction in inflammatory activity [3]

Core Viewpoint - The Hong Kong pharmaceutical sector experienced a significant decline on October 9, with the Hang Seng Biotechnology Index dropping over 5%, influenced by external factors such as U.S. tariff announcements on pharmaceutical products [1][3]. Group 1: Market Performance - The Hang Seng Hong Kong Stock Connect Innovative Drug ETF (520880) saw a decline of over 1% after initially opening up 1.75% [1]. - The Hang Seng Hong Kong Stock Connect Innovative Drug Selected Index recorded a weekly increase of 6.54% during the previous week, reflecting a positive trend before the recent downturn [1]. - Notable declines were observed in key stocks, with Innovent Biologics and China Biologic Products falling over 8% and 7% respectively [1]. Group 2: External Influences - U.S. President Trump's announcement on September 25 regarding a 100% tariff on pharmaceutical products without U.S. manufacturing facilities starting October 1, 2025, has raised concerns for Chinese innovative drug companies heavily reliant on the U.S. market [1][3]. - Southwest Securities predicts that companies with direct export capabilities to the U.S. without local manufacturing will face short-term pressure, while those utilizing business development (BD) strategies will be less affected [3]. Group 3: Future Outlook - Upcoming industry conferences, such as ESMO (October 17-21) and ASH (December), are expected to serve as catalysts for the innovative drug sector [3]. - The fourth quarter will see the implementation of domestic policy changes, including adjustments to the medical insurance catalog, which may impact the sector positively [3]. - The fund manager of the Hong Kong Stock Connect Innovative Drug ETF (520880) indicated that the current market adjustment could present a buying opportunity for high-quality innovative drug companies [3]. Group 4: ETF Characteristics - The Hong Kong Stock Connect Innovative Drug ETF (520880) is the first ETF tracking the Hang Seng Hong Kong Stock Connect Innovative Drug Selected Index, focusing exclusively on innovative drug R&D companies [4]. - The index has shown a year-to-date increase of 119.75%, outperforming other innovative drug indices, and aims to avoid the influence of contract research organizations (CROs) on its performance [5].

Summary of InnoCare Pharma (9969.HK) Conference Call Company Overview - **Company**: InnoCare Pharma (9969.HK) - **Partner**: Zenas BioPharma (ZBIO) - **Focus**: Global development of Orela (orelabrutinib) for multiple sclerosis (MS) and other non-oncology diseases Key Points Licensing Agreement with Zenas - InnoCare announced a licensing deal with Zenas for three assets, including: - Ex-China/Southeast Asia rights for orelabrutinib in MS and non-oncology diseases - Global rights for a preclinical oral brain-penetrant TYK2 inhibitor - A preclinical oral IL-17AA/AF inhibitor - Financial terms include: - Upfront cash payments of **US$100 million** - **7 million** new shares of Zenas upon achieving a milestone in early 2026 (valued at approximately **US$145 million** at **US$20.85/share**) - Development/regulatory/commercial milestone payments of up to **US$1.4 billion** - Tiered royalties on net sales [1][2][4] Clinical Development and Market Potential - Zenas is currently completing a phase 2 study on RMS for its core asset obexelimab but faces challenges in moving to phase 3 due to recruitment difficulties and financial constraints. - There is a higher chance for Zenas to prioritize Orela's phase 3 studies for PPMS and SPMS due to significant unmet medical needs, with a total addressable market (TAM) estimated at **US$12 billion** for PPMS and SPMS [4][5]. - Orela is noted for its best-in-class potential with high selectivity, CNS penetration, and low IC90, indicating high potency [4]. Execution and Recruitment Track Record - Zenas has demonstrated effective patient recruitment, completing enrollment of **93 patients** in about **9 months** for its phase 2 study, comparable to Roche's fenebrutinib study [4]. Financial Considerations - Zenas has a cash balance of **US$305 million** as of September, with a **US$120 million** raise and **US$100 million** payment due in 2025/2026 for the deal. - Additional funding may be required over the next three years to support ongoing and upcoming studies, including Orela's two phase 3 studies with a combined enrollment of approximately **1700 patients** [5]. Preclinical Assets - Zenas plans to start phase 1 on ZB021 (oral IL-17A/F inhibitor) in 2026, with preclinical data showing high potency. - ZB022, a brain-penetrant TYK2 inhibitor, is also in development, awaiting further data to validate its potential for neuroinflammatory and neurodegenerative diseases [6]. Earnings Forecast and Valuation Changes - Earnings forecasts for 2025E/2026E/2027E have been revised up by **Rmb116 million/Rmb204 million/Rmb204 million** due to the licensing deal. - The price target for InnoCare's H-Share has changed to **HK$22.89** (previously **HK$20.59**), and for the A-Share to **Rmb44.10** (previously **Rmb39.66**) [7][10]. Risks and Challenges - Key risks include R&D challenges for clinical assets, lack of a proven commercialization track record, pricing uncertainties, potential entry of generic ibrutinib in 2027 in China, and below-expected progress in global expansion [10]. Competitive Landscape - The competitive landscape for drugs targeting SPMS/PPMS includes Roche's Ocrevus and Sanofi's tolebrutinib, with limited competition for Orela in these indications [9]. Conclusion - The partnership with Zenas is seen as a strategic move for InnoCare to enhance the development of Orela in MS, with significant financial backing and market potential. However, careful monitoring of financial health and competitive dynamics will be essential for future success [1][4][10].

Core Viewpoint - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling by 0.6% and the Hang Seng Tech Index decreasing by 0.22% [1] Group 1: Market Performance - The pharmaceutical sector faced significant losses, with notable declines in specific companies [1] - Nocera Healthcare and SiHuan Pharmaceutical both dropped over 8% [1] - China Biologic Products and Hansoh Pharmaceutical saw declines exceeding 4% [1]

Market Overview - On October 8, the Hong Kong stock market initially fell by 440 points before stabilizing, closing down 128 points at 26,829 points[1] - The Hang Seng Tech Index decreased by 36 points, ending at 6,514 points[1] - Total market turnover was HKD 173.8 billion, higher than before the holiday[1] Sector Performance - The nuclear power sector showed strong performance, with stocks like China National Nuclear (2302 HK) and Harbin Electric (1133 HK) rising between 4% and 22%[1] - Gold and heavy metal sectors continued their upward trend, while Alibaba (9988 HK) and Baidu (9888 HK) saw weaker stock prices[1] U.S. Market Insights - The Dow Jones opened high but closed down 1 point after fluctuating, while the Nasdaq rose by 1.12% to a record high of 23,043 points[2] - The S&P 500 increased by 0.6%, closing at 6,753 points[2] - Gold prices surpassed USD 4,000, and AMD (AMD US) shares surged by 11.4%[2] Macroeconomic Data - As of the end of September, China's foreign exchange reserves were approximately USD 3.34 trillion, up by USD 16.5 billion (0.5%) from August[3] - The number of cross-regional travelers during the recent holiday reached 2.432 billion, a record high, with a daily average of 304 million, marking a 6.2% year-on-year increase[3] Industry Developments - Geely Auto (175 HK) announced a share buyback plan of up to HKD 2.3 billion, reflecting management confidence despite potential declines in domestic demand post-subsidy[4] - The Hang Seng Healthcare Index rose by 1.2%, with Longwind Pharmaceutical (2652 HK) seeing significant gains on its first trading day[4] - Notable partnerships in the pharmaceutical sector, including a deal worth over USD 1 billion for innovative drug rights, highlight ongoing growth in the industry[4]