Company Overview - Nanjing Pharmaceutical Co., Ltd. is located in Guangzhou, Guangdong Province, and was established on December 27, 2006. The company was listed on March 26, 2020. Its main business focuses on the research, production, and sales of antiviral drugs for influenza and other infectious diseases, as well as treatments for major diseases such as cardiovascular diseases and diabetes. The revenue composition is 100% from chemical drug formulations [1][2]. Stock Performance - As of September 19, the stock price of Nanjing Pharmaceutical decreased by 2.06%, trading at 12.37 CNY per share, with a total market capitalization of 3.394 billion CNY. The stock has increased by 89.14% year-to-date, but has seen a decline of 4.70% over the last five trading days and 14.81% over the last 20 days [1]. - The company has appeared on the "Dragon and Tiger List" six times this year, with the most recent appearance on August 27, where it recorded a net purchase of 104 million CNY [1]. Financial Performance - For the first half of 2025, Nanjing Pharmaceutical reported a revenue of 61.8463 million CNY, a year-on-year decrease of 71.28%. The net profit attributable to the parent company was -40.0023 million CNY, reflecting a year-on-year decrease of 493.23% [2]. - The company has distributed a total of 40.74 million CNY in dividends since its A-share listing, with no dividends distributed in the past three years [3]. Shareholder Information - As of June 30, 2025, the number of shareholders increased by 7.02% to 9,464, while the average circulating shares per person decreased by 6.56% to 28,994 shares [2]. - Among the top ten circulating shareholders, Dazheng Jingheng Mixed A (090019) holds 2.9738 million shares, with no change in the number of shares held compared to the previous period [3].

Company Overview - Sichuan Kelun Pharmaceutical Co., Ltd. is located at No. 36 Baihua West Road, Qingyang District, Chengdu, Sichuan Province, established on May 29, 2002, and listed on June 3, 2010. The company primarily engages in the development, production, and sales of large-volume infusion products [1] - The main business revenue composition includes: non-infusion products 48.37%, infusion products 41.28%, research and development projects 7.01%, and others 3.33% [1] Financial Performance - For the first half of 2025, Kelun Pharmaceutical achieved operating revenue of 9.083 billion yuan, a year-on-year decrease of 23.20%, and a net profit attributable to shareholders of 1.001 billion yuan, down 44.41% year-on-year [2] - Since its A-share listing, the company has distributed a total of 6.697 billion yuan in dividends, with 3.386 billion yuan distributed in the last three years [3] Stock Market Activity - As of September 19, the stock price of Kelun Pharmaceutical was 37.12 yuan per share, with a market capitalization of 59.32 billion yuan. The stock has increased by 26.13% year-to-date, but has seen a slight decline of 0.40% over the last five trading days [1] - The company has appeared on the "Dragon and Tiger List" twice this year, with the most recent appearance on April 30, where it recorded a net purchase of 318.792 million yuan [1] Shareholder Information - As of June 30, 2025, the number of shareholders of Kelun Pharmaceutical was 34,200, an increase of 2.55% from the previous period, with an average of 38,138 circulating shares per person, a decrease of 2.49% [2] - The top ten circulating shareholders include notable funds such as China Europe Medical Health Mixed A and Hong Kong Central Clearing Limited, with varying changes in their holdings [3]

Company Overview - Ruizhi Pharmaceutical Technology Co., Ltd. is located in Guangzhou, Guangdong Province, and was established on January 26, 2000. It was listed on December 22, 2010. The company's main business involves pharmaceutical research and production outsourcing services, micro-ecological nutrition, and micro-ecological medicine [2] - The revenue composition of the company is as follows: 99.06% from pharmaceutical research and production outsourcing services, 0.52% from prebiotic products, 0.35% from rental income, and 0.07% from other income [2] - As of September 10, 2023, the number of shareholders is 47,500, an increase of 2.44% from the previous period, with an average of 9,989 circulating shares per person, a decrease of 2.38% [2] Financial Performance - For the first half of 2025, Ruizhi Pharmaceutical achieved operating revenue of 534 million yuan, a year-on-year increase of 14.75%. The net profit attributable to the parent company was 25.38 million yuan, representing a year-on-year growth of 140.35% [2] - The company has cumulatively distributed 180 million yuan in dividends since its A-share listing, with no dividends distributed in the past three years [3] Stock Performance - On September 19, 2023, Ruizhi Pharmaceutical's stock price decreased by 2.00%, trading at 12.74 yuan per share, with a total market capitalization of 6.344 billion yuan [1] - Year-to-date, the stock price has increased by 98.44%, but it has declined by 4.93% over the last five trading days and by 2.38% over the last 20 days. Over the last 60 days, the stock price has risen by 24.54% [1] - The company has appeared on the "Dragon and Tiger List" twice this year, with the most recent appearance on July 29, where it recorded a net purchase of 165 million yuan [1]

Group 1 - The Hang Seng Index opened up 0.14%, with the Hang Seng Tech Index rising by 0.44%, indicating a rebound in tech stocks, including NIO up nearly 4%, JD Group and SMIC up over 2%, and Trip.com up over 1% [1] - Goldman Sachs maintains an overweight rating on A-shares and H-shares, suggesting to buy on dips and focusing on themes such as leading private enterprises, artificial intelligence, anti-involution, and shareholder returns [1] - Multiple institutions have released reports indicating that the current interest rate cut cycle by the Federal Reserve is different from previous ones, with A-shares and H-shares expected to perform well [1] Group 2 - Huaxin Securities reports that the restart of the Federal Reserve's interest rate cut cycle, in the context of a weak economy, is expected to be deeper and longer, leading to a trend of opportunities in rate cut trading [2] - According to Zhongyin Securities, the Hong Kong stock market is expected to benefit in the short term from the dual catalysts of global liquidity shift and domestic profit inflection points during the interest rate cut cycle [2] - The overall valuation of the Hong Kong market is at a relatively low level globally, with the AH premium remaining within a reasonable range, indicating continued investment value in Hong Kong stocks [2] Group 3 - The current macro and market environment is more favorable for Hong Kong stocks, with structural highlights such as stable returns from dividends and new consumption, AI technology, and innovative pharmaceuticals [3] - The contradiction of excess domestic liquidity and a lack of good assets is driving continuous inflow of southbound funds into Hong Kong stocks [3] - Future market recovery will depend on corporate profit restoration, which is driven by effective fiscal policies and a reversal in the credit cycle [3]

Core Viewpoint - The article discusses the recent volatility in the stock price of Yaojie Ankang (药捷安康), highlighting its significant price fluctuations and the impact of clinical trial news on its market performance [5][6][9]. Stock Performance Summary - On September 16, Yaojie Ankang's stock price surged nearly 60% at the opening, reaching a peak of 679.50 HKD per share, with a market cap exceeding 260 billion HKD. However, it closed down 53.73% on the same day, ending at 192.0 HKD per share [5][6]. - Following this, on September 17, the stock rebounded, closing up 8.96% at 209.2 HKD per share, with a total market cap of 83.03 billion HKD. By September 18, the stock fell again by 12.43% to 183.2 HKD per share [5][6]. - Since its IPO on June 23, the stock price has increased by 1293.16% from the initial offering price of 13.15 HKD per share [5]. Clinical Trial Developments - The primary driver behind the stock's recent surge was the announcement of a clinical trial for its core product, Tiengoni (替恩戈替尼), which received clinical trial approval from the National Medical Products Administration of China [9][10]. - Tiengoni is a multi-target kinase inhibitor that shows potential in treating various cancers, including cholangiocarcinoma, prostate cancer, liver cancer, and breast cancer. The company expects to complete the registration phase II clinical trial for cholangiocarcinoma by the second half of 2025 [11][12]. Financial Performance and Future Outlook - Yaojie Ankang has reported significant losses, totaling approximately 1 billion CNY over the past three and a half years, with losses of 252 million CNY in 2022, 343 million CNY in 2023, and 123 million CNY in the first half of 2024 [13][15]. - The company has raised over 1.7 billion CNY through multiple financing rounds since its establishment in 2014, relying heavily on external funding to support its operations and R&D efforts [15]. - Despite the promising developments, the company is still in the registration clinical phase and has not yet commercialized any products, indicating a long road ahead before potential market entry [15].

Core Viewpoint - The recent volatility of the biotech company, Yaojie Ankang, in the Hong Kong stock market has raised questions about the investment value of the 18A sector, which consists of biotech companies without revenue or profit [2][12]. Group 1: Company Performance - Yaojie Ankang experienced a dramatic stock price increase of 130% on September 12, 2023, followed by a peak market capitalization of nearly HKD 1 trillion [3][5]. - The stock price surged to HKD 679.5 per share on September 16, 2023, before plummeting by 53.73% to close at HKD 192 per share, resulting in a market value loss of nearly HKD 200 billion within hours [3][5]. - Since its listing on June 23, 2023, Yaojie Ankang's stock price has increased nearly 13 times, with a cumulative increase of 1293.16% as of September 18, 2023 [5][10]. Group 2: Market Dynamics - The inclusion of Yaojie Ankang in multiple indices, including the Hang Seng Composite Index, led to significant passive fund buying, contributing to its rapid price fluctuations [6][7]. - The stock's low liquidity and small market capitalization made it susceptible to sharp price movements when large amounts of capital entered the market [7][9]. - The phenomenon of ETF arbitrage was highlighted, indicating that passive funds could inadvertently amplify stock price volatility [6][8]. Group 3: Investment Sentiment - The 18A sector has been characterized as a "wealth creation myth," with many investors questioning whether it represents a valuation bubble or a value opportunity [2][10]. - The market sentiment towards biotech companies has shifted from valuing potential to focusing on certainty, with investors now prioritizing market potential, pricing power, and cash flow capabilities [14][16]. - Despite recent downturns, there remains a belief among investors that value investing in the biotech sector will yield returns in the long run [11][12]. Group 4: Regulatory and Market Structure - The establishment of the 18A listing rules has been seen as a milestone in China's innovation drug ecosystem, allowing numerous biotech companies to access capital markets [10][13]. - Concerns have been raised about the need for index providers to adapt their rules to prevent short-term volatility from affecting stock valuations [9][16]. - The market's recognition of the biotech sector has increased, but the high technical barriers require investors to accurately assess the value of innovative drug companies [15][17].

Core Viewpoint - The recent inclusion of multiple Hong Kong stocks into the Stock Connect program has led to significant price volatility and increased trading volumes, presenting both investment opportunities and risks for investors [1][2][4]. Group 1: Stock Performance - Several stocks, such as Yaojie Ankang-B and Baize Medical, experienced extreme price fluctuations after being included in the Stock Connect, with Yaojie Ankang-B surging by 20.13% on September 8, followed by a dramatic drop of 53.73% on September 16 [2][7]. - Baize Medical saw its stock price increase by over 50% on September 15, with trading volatility reaching 85.55% on September 16, before experiencing consecutive declines [2][3]. Group 2: Trading Volume - The average daily trading volume of stocks like Yaojie Ankang-B and Baize Medical surged significantly after their inclusion in the Stock Connect, with increases ranging from several times to dozens of times compared to pre-inclusion levels [3]. Group 3: Reasons for Volatility - The volatility in stock prices is attributed to several factors, including adjustments in index constituents leading to passive buying by related ETFs, increased buying from mainland investors, and speculative trading driven by the innovative nature of the included stocks [4][5][6]. - The adjustment of index constituents has resulted in new stocks being added to the Stock Connect, which has led to substantial buying pressure from ETFs tracking these indices [4]. - The influx of mainland capital has provided additional liquidity, further driving up stock prices [5]. - Speculative trading is also a factor, particularly for stocks in the pharmaceutical sector that have recently gained attention for their innovative products [6]. Group 4: Market Dynamics - Many of the stocks included in the Stock Connect are relatively new, with limited shares available for trading, making them more susceptible to extreme price movements when capital flows in [6]. - The fundamental uncertainties surrounding these companies, such as Yaojie Ankang-B's reported net loss of 123 million yuan in the first half of 2025, highlight the risks associated with investing in these volatile stocks [7].

Group 1 - The recent inclusion of multiple Hong Kong stocks into the Stock Connect program has led to significant price volatility and trading volume increases [1][2][3] - Notable examples include Yaojie Ankang-B, which saw a price surge of 20.13% on the day of inclusion, followed by a dramatic drop of 53.73% shortly after [2][4] - Other stocks like Baize Medical and Brain Dynamics-B also experienced extreme fluctuations, with trading volumes increasing several times compared to before their inclusion [3][4] Group 2 - The volatility is attributed to several factors, including adjustments in index constituents that prompted passive buying from ETFs tracking these indices [4][5] - The inclusion of these stocks has opened up opportunities for mainland investors, resulting in increased buying activity [5][6] - Speculative trading has also played a role, particularly in innovative pharmaceutical stocks that have garnered attention due to their growth potential [6][7] Group 3 - The stocks that have been included in the Stock Connect are often newly listed, leading to lower liquidity and making them more susceptible to price swings [6][7] - The fundamental uncertainties surrounding these companies, such as ongoing losses and lack of revenue, add to the investment risks associated with these stocks [7]

Core Viewpoint - The recent inclusion of several Hong Kong stocks into the Stock Connect program has led to significant price volatility and increased trading volumes, presenting both investment opportunities and risks [2][12]. Group 1: Stock Performance Post Inclusion - Multiple stocks, such as Yaojie Ankang-B and Baize Medical, experienced dramatic price increases after being included in the Stock Connect, with Yaojie Ankang-B rising by 20.13% on the inclusion date and peaking at over 10 times its initial price shortly thereafter [4][5]. - However, these stocks also faced severe corrections, with Yaojie Ankang-B dropping by 53.73% on September 16 and further declines following [4][5]. - Other stocks like Brain Dynamics-B and Baize Medical also showed similar patterns of extreme volatility and trading volume spikes post-inclusion [5][12]. Group 2: Reasons for Increased Volatility - The volatility is attributed to several factors, including adjustments in index constituents that led to passive buying by ETFs tracking these indices [8][9]. - The inclusion of these stocks allowed mainland investors to participate, bringing in additional capital and increasing buying pressure [10]. - Speculative trading, particularly in innovative pharmaceutical stocks, has also contributed to the price swings, as these stocks are perceived to have high growth potential [11][13]. Group 3: Trading Volume Surge - Following their inclusion, stocks like Yaojie Ankang-B and Baize Medical saw their average daily trading volumes increase significantly, sometimes by several times or even dozens of times compared to pre-inclusion levels [5][12]. - The influx of capital and heightened trading activity has made these stocks more susceptible to rapid price changes [13].

Core Viewpoint - The recent volatility of the biotech company, Yaojie Ankang, in the Hong Kong stock market has raised questions about the investment value of the 18A sector, which consists of biotech companies without revenue or profit [1][12]. Company Performance - Yaojie Ankang experienced a dramatic price surge, with its stock price increasing by nearly 13 times since its listing on June 23, 2023, and reaching a market capitalization close to 100 billion HKD [3][4]. - On September 15, 2023, the stock price peaked at 415 HKD per share, marking a single-day increase of 115.58% [2][4]. - The stock's price fluctuated significantly, with a high of 679.5 HKD per share on September 16, 2023, before plummeting to 192 HKD per share, resulting in a market value loss of nearly 200 billion HKD within hours [2][4]. Market Dynamics - The inclusion of Yaojie Ankang in multiple indices, such as the Hang Seng Composite Index, led to substantial passive buying from ETFs, contributing to the stock's rapid price movements [7][8][9]. - The stock's low liquidity and small market capitalization made it susceptible to sharp price increases when significant buying interest emerged [5][10]. - The phenomenon of ETF arbitrage was highlighted, indicating that passive funds could inadvertently amplify stock price volatility [9][10]. Investment Sentiment - The 18A sector has been characterized as a "wealth creation myth," with many investors questioning whether it represents a valuation bubble or a value opportunity [1][12]. - The market has seen a resurgence in interest in biotech stocks, with several companies in the 18A category experiencing significant price increases this year [13][14]. - Investors are advised to focus on the underlying fundamentals of biotech companies, as the market's perception of value has evolved from speculative potential to a focus on certainty and cash flow [20][24]. Regulatory and Market Considerations - The establishment of the 18A listing rules has been viewed as a milestone in China's innovation drug ecosystem, allowing for the listing of companies that may not yet have revenue or profit [19]. - There are calls for index providers to optimize their rules to better reflect market conditions and reduce the potential for exploitation by investors [11][19].