On June 3, Hengrui Medicine (01276.HK) declined 3.4% in regular trading, trading at HK$56.8 with turnover of HK$52.69 million, extending losses from late May as dual policy concerns persist.

The decline reflects continued fallout from two converging regulatory threats. On the US side, the House Select Committee on China formally urged the Treasury to add biotechnology to the COINS Act prohibited investment list, explicitly naming Hengrui's US$15.2 billion co-development deal with Bristol-Myers Squibb as a case of American capital empowering Chinese biotech. On the domestic side, a draft revision to China's Prohibited and Restricted Export Technology Catalogue reportedly seeks to restrict outbound transfers of core platform technologies in antibodies, ADCs, and gene therapy.

Although Hengrui's Co-Co collaboration model does not involve full technology ownership transfer and the company stated operations remain normal, investor sentiment has remained fragile amid persistent policy uncertainty. The broader pharmaceuticals sector saw widespread weakness, with CSPC Pharma down 4.36%, Hansoh Pharma down 2.51%, and Simcere Pharma down 2.6%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)