Several innovative drug concept stocks showed strength in the afternoon session.

As of the latest trading, XTALPI (02228) rose 7.45% to HKD 6.92; GENSCRIPT BIO (01548) climbed 6.4% to HKD 18.3; REMEGEN (09995) advanced 2.96% to HKD 81.75; and WUXI BIO (02269) increased 2.75% to HKD 38.84.

On the policy front, the Shanghai Municipal People's Government issued the "15th Five-Year Plan for Health Development in Shanghai" on July 30. The plan outlines enhanced support for the research and development of innovative drugs and medical devices. Specifically, it establishes a mechanism to exempt innovative drugs from the DRG (Diagnosis Related Groups) and DIP (Diagnosis-Intervention Packet) payment caps, sending a positive signal regarding the medical insurance reimbursement environment for these products. Furthermore, the National Essential Medicines List has, for the first time, included innovative drugs on a batch scale, which is expected to improve the clinical accessibility of domestically developed innovative drugs.