Shares of Contract Research Organization (CRO) concept stocks are showing strong performance. At the time of writing, Asymchem (06821) is up 12.09% to HK$108.5; Genscript Biotech (01548) has risen 8.56% to HK$11.8; Tigermed (03347) has gained 7.88% to HK$33.42; and WuXi AppTec (02359) has increased 8.18% to HK$141.8.

Catalyst for the Movement

The BIO 2026 International Biotechnology Conference was held in San Diego, USA, from June 22nd to 25th. The high-efficiency advantages of Chinese CXO enterprises gained global recognition, further expanding the potential for overseas order growth.

Additionally, three government departments jointly issued the "Action Plan for Stabilizing and Promoting the Quality of Foreign Investment Utilization," which explicitly states that detailed rules for segmented drug production will be expedited. This aims to facilitate overseas drug marketing authorization holders in conducting cross-border segmented production of biologics and chemical drugs.

Analyst Perspective

A research report from Orient Securities noted that, based on the latest data for key indicators of CXO industry vitality, multiple factors including domestic funding, research and development, and order flow have been resonating positively in the first five months of 2026. This indicates the sustained high vitality of China's domestic CXO sector.

The report suggests that domestic CXO companies have ample orders with both volume and price rising. As these orders are executed and converted, it is expected to lead to significant improvements in their financial statements.