Group 1 - Hong Kong's biotech fundraising momentum is projected to continue into 2026, driven by licensing deals and strong post-IPO trading, indicating renewed investor confidence in China's drug developers [1][2] - The domestic innovation sector is entering a harvest phase, with Chinese innovative drugs increasingly expanding into overseas markets, making biopharmaceutical stocks attractive [2] - Analysts highlight that while capital is returning to the biotech sector, it also emphasizes the underlying risks associated with the industry [3] Group 2 - Biotech is characterized as a high-risk, cash-intensive sector, with expectations of falling US interest rates and declining borrowing costs likely to attract more investors [4] - Several companies are in the IPO pipeline, including CSPC Innovation Pharmaceutical, which has commercialized two antibody drugs and two mRNA vaccines, and has a pipeline of 15 drug candidates [4] - Under Chapter 18A, companies like Jingze Biopharmaceutical and InventisBio have filed for Hong Kong IPOs, targeting various therapeutic areas, while Frontera Therapeutics aims to list as a clinical-stage gene therapy company [5] - Guangzhou Novaken Pharm is also an 18A applicant, developing drugs across multiple therapeutic areas, and the success of recent healthcare IPOs is encouraging more companies to seek fundraising in Hong Kong [6]