Understanding the Market | CRO Concept Stocks Rise Sharply, WuXi AppTec Soars 12% at One Point Amid Reports of U.S. Lawmakers Considering Changes to the Biosecurity Bill

The CRO concept stocks have further expanded their gains. As of the time of writing, WuXi AppTec is up 10%, trading at HKD 55; Pharmaron is up 8.12%, trading at HKD 14.64; WuXi Biologics is up 7.02%, trading at HKD 17.6; JOINN is up 5.62%, trading at HKD 9.4. On the news front, market reports indicate that U.S. lawmakers are considering changes to the legislation, with the compromise version including increased administrative review processes for relevant companies, rather than an automatic ban on biopharmaceutical companies collaborating with Chinese firms. These potential revisions involve key parts of the legislation that specifically name Chinese companies. Minsheng Securities' recent research report points out to pay attention to the Senate schedule and timeline for December 2024, as well as the progress of the standalone legislation H.R.8333; the Federal Reserve's 50bp rate cut is expected to continue the improvement trend in biotech financing seen in the first half of the year, with CXO leaders, primarily contributing orders and revenue from overseas clients, likely to further recover