On June 8, Hengrui Medicine (01276.HK) declined 3.3% in regular trading, trading at HKD 52.75/share, with trading volume of HKD 39.29 million. The stock continues to face selling pressure amid escalating US legislative threats targeting Chinese biotech cross-border transactions.

On the policy front, US House bipartisan lawmakers formally introduced the Biotech Investment National Security Act on June 2, seeking to amend the COINS Act by adding biotechnology to the restricted investment list. If passed, licensing deals, joint ventures, and equity investments involving Chinese biotech firms would face review by both the US Treasury and Defense departments. The bill specifically cited Hengrui's approximately $15.2 billion Co-Co deal with Bristol-Myers Squibb as a case warranting scrutiny, raising concerns over BD revenue sustainability which accounted for 10.7% of the company's total revenue in fiscal year 2025.

The broader Pharmaceuticals sector traded weak, with CSPC Pharma down 1.8%, Hansoh Pharma down 1.16%, Luye Pharma down 3.76%, United Lab down 1.84%, and SBP Group down 2.58%.

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