--- title: "Morgan Stanley: Catalysts for China's biotech sector concentrated in the second half, reinitiating coverage on INNOVENT BIO with an \"Overweight\" rating" type: "News" locale: "en" url: "https://longbridge.com/en/news/277549898.md" description: "Morgan Stanley released a report stating that the Chinese biotechnology sector has entered a turning point this year, with stable fundamentals, strong resilience in innovation, and a recovery in financing activities. It is expected to be volatile in the first half of the year, with unstable risk appetite; in the second half, stock price direction will become clearer due to catalysts and capital reallocation. Morgan Stanley has resumed coverage of INNOVENT BIO, giving it an \"Overweight\" rating and a target price of 130 yuan, while adjusting the target prices of several other stocks" datetime: "2026-03-03T02:02:58.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/277549898.md) - [en](https://longbridge.com/en/news/277549898.md) - [zh-HK](https://longbridge.com/zh-HK/news/277549898.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/277549898.md) | [繁體中文](https://longbridge.com/zh-HK/news/277549898.md) # Morgan Stanley: Catalysts for China's biotech sector concentrated in the second half, reinitiating coverage on INNOVENT BIO with an "Overweight" rating Morgan Stanley released a report indicating that the Chinese biotechnology sector has entered a turning point this year, with fundamentals stabilizing, resilient innovation foundations, ongoing licensing transactions, and a continuous recovery in financing activities. However, in the first half of the year, under the backdrop of a scarcity of catalysts, there are limited highly confident investment themes, and risk appetite Beta remains unstable. Amid increasing geopolitical uncertainties, Morgan Stanley expects a broader rotation to de-risked sectors, with greater allocation pressure on high Beta and long-duration sectors such as biotechnology. Morgan Stanley anticipates that the Chinese biotechnology sector will experience range-bound fluctuations in the first half of the year; catalysts, capital reallocation, and more ideal valuations will lay the foundation for clearer stock price directions in the second half of this year. The firm expects the next round of growth may begin when meaningful data releases, business development (BD) activities, and visibility of licensing transactions start to concentrate. As most events are concentrated in the second half of 2026, the firm believes that further industry re-evaluation should be delayed rather than interrupted. Morgan Stanley expects the Chinese biotechnology sector to be range-bound in the first half of this year, with a clearer direction in the second half. The first half may continue to be volatile and event-driven; as catalysts accumulate and overseas capital flows expand, the firm anticipates a more sustained upward trend in the second half of the year. The firm has resumed coverage of INNOVENT BIO (01801.HK) with an "Overweight" rating and a target price of 130 yuan. The firm has also adjusted target prices for several stocks, as detailed in another table ### Related Stocks - [Tianhong CNI BIOMEDICINE ETF (159859.CN)](https://longbridge.com/en/quote/159859.CN.md) - [Minsheng Royal CSI Biotechnology Theme ETF (516930.CN)](https://longbridge.com/en/quote/516930.CN.md) - [China Universal CNI HK Connect Innovative Drugs Industry ETF (159570.CN)](https://longbridge.com/en/quote/159570.CN.md) - [Bosera Hang Seng SCHK Innovative Drug Select ETF (520690.CN)](https://longbridge.com/en/quote/520690.CN.md) - [Penghua SSE STAR Biology and Medicine ETF (588250.CN)](https://longbridge.com/en/quote/588250.CN.md) - [ChinaAMC SSE STAR Biology and Medicine ETF (588130.CN)](https://longbridge.com/en/quote/588130.CN.md) - [China Merchants CSI Biotechnology Theme ETF (159849.CN)](https://longbridge.com/en/quote/159849.CN.md) - [E Fund Hang Seng SCHK Innovative Drug ETF (159316.CN)](https://longbridge.com/en/quote/159316.CN.md) - [Yinhua CSI Innovative Drugs Industry ETF (159992.CN)](https://longbridge.com/en/quote/159992.CN.md) - [INNOVENT BIO (01801.HK)](https://longbridge.com/en/quote/01801.HK.md) - [ChinaAMC CSI Biotechnology Theme ETF (516500.CN)](https://longbridge.com/en/quote/516500.CN.md) - [Ping An CSI Medicine and Medical Device Innovation ETF (516820.CN)](https://longbridge.com/en/quote/516820.CN.md) - [Guotai CSI Hugangshen Innovative Drugs Industry ETF (517110.CN)](https://longbridge.com/en/quote/517110.CN.md) - [Huaan Hang Seng Biotech ETF (159102.CN)](https://longbridge.com/en/quote/159102.CN.md) - [Hwabao WP Hang Seng SCHK Innovative Drug Select ETF (520880.CN)](https://longbridge.com/en/quote/520880.CN.md) - [ICBCCS SSE STAR Biology and Medicine ETF (588860.CN)](https://longbridge.com/en/quote/588860.CN.md) - [E Fund CSI Biotechnology Theme ETF (159837.CN)](https://longbridge.com/en/quote/159837.CN.md) - [Guotai CSI Bio-medicine ETF (512290.CN)](https://longbridge.com/en/quote/512290.CN.md) - [Fullgoal Hang Seng SCHK Innovative Drug & Healthcare ETF (159506.CN)](https://longbridge.com/en/quote/159506.CN.md) - [Guotai SSE STAR Brand Name Drug ETF (589720.CN)](https://longbridge.com/en/quote/589720.CN.md) ## Related News & Research - [Henlius Biotech Doses First Patient in Phase 2/3 Breast Cancer Drug Study; Shares Slip 3%](https://longbridge.com/en/news/277421361.md) - [03:03 ETSectra acquires Oxipit, advancing autonomous AI capabilities in diagnostic imaging](https://longbridge.com/en/news/277900089.md) - [Sanofi bets on Sino Biopharm’s transplant drug in $1.5bn licensing deal](https://longbridge.com/en/news/277818646.md) - [These Analysts Cut Their Forecasts On Veeva Systems Following Q4 Results](https://longbridge.com/en/news/277930677.md) - [Sino Biopharm unit licenses blood cancer drug to Sanofi for up to $1.53 billion](https://longbridge.com/en/news/277695972.md)