A-Share Markets Rise in Morning Session, Innovative Drug Sector Leads Gains
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China's A-share markets rose across the board at midday on September 20, with the Shanghai Composite up 0.55% to 3,933.37 points, the Shenzhen Component up 0.57%, and the ChiNext up 0.93%. The PBOC conducted a 165 billion yuan 7-day reverse repo at 1.40%. In policy news, China's Vice Premier He Lifeng met with US Treasury Secretary Bessent and Trade Representative Greer in New York for economic consultations, discussing trade and AI issues. The NMPA and General Administration of Customs launched a pilot for electronic customs clearance of imported drugs at Beijing ports. Sector-wise, recombinant proteins, CRO, biotech, chemical pharma, innovative drugs, and vitamins led gains, while precious metals and white goods lagged. Analysts provided stock-specific commentary: Tianfeng Securities noted Chengdu Biotech's HAILO platform and RIPTAC projects; Southwest Securities highlighted Huiyu Pharma's 13 innovative drug pipeline including HY-0007; Pacific Securities cited Hongbo Medical's growth from patent expirations; and Southwest Securities noted CanSino's accelerated overseas clinical progress.
Source report
Market Overview
China's three major A-share indices posted gains by midday close. The Shanghai Composite Index rose 0.55% to 3,933.37 points, the Shenzhen Component Index gained 0.57% to 13,718.23 points, and the ChiNext Index increased 0.93% to 3,403.97 points. The STAR 50 Index edged up 0.35% to 1,658.41 points, while the Beijing Stock Exchange 50 Index climbed 1.60% to 1,061.08 points.
Liquidity
The People's Bank of China (PBOC) conducted 165 billion yuan in 7-day reverse repurchase agreements today, with an operation rate of 1.40%.
Key News
- China-U.S. Economic and Trade Consultations: On September 20 (local time), Chinese lead for China-U.S. economic and trade affairs and Vice Premier He Lifeng held economic and trade consultations with U.S. counterparts, Treasury Secretary Janet Yellen and Trade Representative Katherine Tai, in New York. Guided by the important consensus reached by the two heads of state, and adhering to the principles of mutual respect, peaceful coexistence, and win-win cooperation, the two sides engaged in candid, in-depth, and constructive exchanges on key issues of mutual concern, including implementing previous consultation outcomes and promoting bilateral trade and investment. A dialogue on artificial intelligence was also held.
- Digital Customs Clearance for Imported Drugs: The National Medical Products Administration and the General Administration of Customs announced that, to enhance the digitalization of government services and improve the efficiency and convenience of customs clearance for imported drugs (including medicinal herbs), a pilot program for electronic customs clearance will be launched at Beijing ports, effective from the date of the announcement. Electronic documents for imported drug clearance will have the same legal validity as paper documents. During the pilot period, existing paper documents will remain valid, and enterprises may continue to use them as per relevant regulations.
Sector Performance
- Leading sectors: Recombinant protein, CRO, biological products, chemical pharmaceuticals, innovative drugs, and vitamins.
- Underperforming sectors: Precious metals and white goods.
Analyst Commentary on Clinical CRO
As a downstream segment in the innovative drug cycle, clinical CRO is expected to see a sustained recovery in both the volume and pricing of new orders, supported by a high boom in preclinical activity and an accelerating number of IND applications.
Stock Highlights
- Chengdu Lead (成都先导)
- Analyst: Tianfeng Securities
- The company's proprietary "DEL+AI+Automation" integrated molecular optimization platform, HAILO, continues to improve. It has launched an AIDD platform for cyclic peptides and supports multiple RIPTAC projects, completing multiple rounds of DMTA (Design-Make-Test-Analyze) optimization for its RIPTAC pipeline.
- Huiyu Pharmaceutical (汇宇制药)
- Analyst: Southwest Securities
- The company has 13 innovative drug projects under development. HY-0007, a bispecific fusion protein targeting PD-1, TIGIT, and IL-15/IL-15Rα, is independently developed by its wholly-owned subsidiary Huiyu Haiyue. The Phase I/II clinical trial for treating advanced solid tumors completed the first patient dosing in Phase I in October 2024, and Phase I is currently ongoing.
- Hongbo Medical (泓博医药)
- Analyst: Pacific Securities
- Following the expiration of the patent extension protection for Ticagrelor in Europe and the U.S. in December 2024, overseas demand has grown rapidly, and the company's commercial production business has entered a phase of rapid growth.
- CanSino Biologics (康希诺)
- Analyst: Southwest Securities
- The company is accelerating the progress of its overseas clinical trials, and the medium- to long-term value of its innovative pipeline is expected to be realized more quickly.
Cover image source: National Business Daily Media Library
Source
每日经济新闻Eastern
Part of this Story
China A-share innovative drug stocks surge as Shanghai Composite rises 0.55%