BOCOM INTL released a research report stating that during this week (September 9-16, 2025), the Hang Seng Index rose 1.9%, while the Hang Seng Healthcare Index fell 3.0%, ranking 12th among sector indices and underperforming the broader market. Since September, domestic capital's shareholding ratio through Stock Connect has remained stable, while foreign capital holdings in Hong Kong pharmaceutical stocks have declined slightly since mid-year. Currently, domestic capital continues to position in innovative pharmaceutical companies, while foreign capital maintains a cautious attitude toward the sector as a whole, focusing on immediate earnings visibility. This week, domestic capital increased holdings in leading companies and innovative pharmaceutical firms, while foreign capital added positions in cost-effective CXO companies but reduced holdings in innovative pharmaceutical targets that domestic capital was accumulating.

The firm mentioned that Trump recently claimed he would increase restrictions on importing Chinese drugs, raising market concerns about the overseas expansion prospects of domestic innovative pharmaceuticals. However, the firm believes the actual impact would be limited, considering: 1) The lobbying initiators are mainly US biotech companies and investors, with low participation from multinational corporations (MNCs), resulting in limited actual influence; 2) MNCs' increasing dependence on Chinese pharmaceutical innovation makes administrative orders difficult to advance. After the broad rally in the innovative pharmaceutical sector, the importance of timing and stock selection has significantly increased. The firm recommends gradually positioning during sector pullbacks and suggests focusing on innovative pharmaceuticals and CXO subsectors.