Core Viewpoint - The Hong Kong stock market is experiencing a surge in biotech IPOs, with a record number of companies rushing to list, driven by a favorable market environment and the urgency to secure funding before potential downturns [4][5][12]. Group 1: Market Dynamics - The number of biotech companies listed in Hong Kong in the first half of 2025 is approaching the total for the entire previous year, with at least 17 companies having gone public by early November [4]. - There are over 273 companies currently waiting to go public, indicating a backlog that could delay listings until 2026 [5]. - The Hang Seng Biotech Index and the Nasdaq Biotech Index have both seen declines of over 5% in the past three months, signaling potential market volatility [5][11]. Group 2: Investment Trends - Many biotech companies have seen their stock prices double within the year, with some unprofitable firms reaching market valuations exceeding 200 billion [5]. - The trend of "business development" (BD) has become crucial for biotech firms, as securing large BD deals can significantly enhance their market value and attract key investors [20][22]. - The capital market for innovative drugs in China has evolved rapidly, with a shift from focusing solely on drug commercialization to prioritizing early-stage licensing deals to secure funding [25][26]. Group 3: Challenges and Risks - The biotech sector is facing a tightening of funding, with the first half of 2024 expected to see a significant drop in financing compared to previous years [15][29]. - Companies are under pressure to demonstrate their value through BD transactions, as the market is becoming increasingly discerning about the quality of innovation [28][29]. - The potential for a market correction looms, as many companies may face selling pressure if their clinical data does not meet expectations or if their valuations are deemed excessive [34].

Core Viewpoint - The stock of the innovative drug company Valiant Biotech-B opened with a significant increase of 106% on its first trading day, indicating strong market interest and investor confidence [1] Summary by Relevant Sections - **Stock Performance** - Valiant Biotech-B's shares opened at a price that reflected a 106% increase, currently trading at 72.4 HKD [1] - **Initial Public Offering (IPO) Details** - The company globally offered 36.8625 million H shares, with 43.48% allocated for public offering in Hong Kong and 56.52% for international offering [1] - The final offering price was set at 35 HKD per share, resulting in net proceeds of approximately 1.179 billion HKD from the global offering [1]