Core Viewpoint - The stock of the innovative drug company, Jiangsu Hengrui Medicine Co., Ltd. (药捷安康), experienced extreme volatility on September 16, with a peak increase of 63% followed by a dramatic drop of 53.7%, resulting in a market value loss exceeding 190 billion HKD [1][5][11]. Group 1: Stock Performance - Jiangsu Hengrui Medicine's stock price surged to a historical high of 679.5 HKD per share after a significant increase over the previous four trading days [3][5]. - The stock, which was listed less than three months ago, saw its price rise over 50 times from its initial offering price of 13.15 HKD, reaching a market capitalization close to 270 billion HKD [3][8]. - Following the peak, the stock closed at 192 HKD, marking a total market value drop of over 190 billion HKD from its high [1][5]. Group 2: Company Background - Jiangsu Hengrui Medicine, established in 2014, is a biotechnology company focused on developing innovative therapies for cancer, inflammation, and cardiovascular diseases, with its core product, Tinengotinib, still in the clinical trial phase [8][6]. - The company has not yet commercialized any products and reported losses of 343 million RMB and 275 million RMB for 2023 and 2024, respectively, with no revenue generated as of mid-2025 [8][6]. Group 3: Market Dynamics - The stock's volatility is attributed to its inclusion in the Hong Kong Stock Connect Innovative Drug Index, which led to passive buying from index-tracking ETFs [7][12]. - The limited float of shares, with only 549,000 shares available for trading, contributed to the stock's dramatic price movements as small amounts of capital could significantly impact the price [12][11]. - The sudden surge in stock price raised questions about the transparency of index adjustments and the potential for passive funds to manipulate stock prices [16][17].