Morgan Stanley released a research report stating that the total market capitalization of Chinese biotech stocks listed in Hong Kong has surged 154% year-to-date, significantly outpacing the Hang Seng Index's 34% gain over the same period. This performance reflects a major shift in market recognition of domestic pharmaceutical companies' innovation capabilities.

The investment bank expects that accelerated Federal Reserve rate cuts will drive risk appetite adjustments, channeling funds toward growth sectors such as Chinese biotechnology. However, Morgan Stanley anticipates that individual stock performance will continue to depend on company fundamentals, including commercialization execution capabilities and innovation R&D progress.

The firm favors companies with near-term catalysts, including AKESO (09926), INNOCARE (09969), ABBISKO-B (02256), INNOVENT BIO (01801), and DUALITYBIO-B (09606). Additionally, Morgan Stanley has assigned "Outperform" ratings to VISEN PHARMA-B (02561) and Zai Lab (09688).