Biotech concept stocks led declines in Hong Kong. As of press time, HBM HOLDINGS-B (02142) fell 9.15% to HK$12.81, BRII-B (02137) dropped 7.56% to HK$1.59, REMEGEN (09995) declined 5.83% to HK$80, and INNOVENT BIO (01801) slid 6.18% to HK$86.5.

Market sources indicate signs of cooling in biotech business development (BD) deals. Data from PharmaCube shows China-related transactions totaled $60.8 billion in the first half of 2025, up 129% year-on-year. However, growth slowed to 64% YoY in the first three quarters of 2025, with total deal value reaching $93.7 billion, suggesting a deceleration in domestic biotech BD activity starting Q3.

Additionally, the resilient U.S. September jobs report prompted Morgan Stanley to withdraw its forecast for a 25-basis-point Fed rate cut in December. The bank now expects rate reductions in January, April, and June 2026, lowering the target range to 3%-3.25%. Analysts note that fading Fed rate cut expectations may pressure biotech valuations and overseas life sciences investment.