<div id="readability-page-1"><div>JD HEALTH (06618.HK) -2.320 (-5.137%) Short selling $160.42M; Ratio 21.399% opened flat today and hit an intraday low of HKD42.5. It was last reported at HKD42.72, down 5.4%, with turnover of 4.7171 million shares, involving HKD204 million.ALI HEALTH (00241.HK) -0.150 (-3.538%) Short selling $660.71M; Ratio 40.092% opened 0.24% higher today and reached a high of HKD4.25. It was last reported at HKD4.1, down 3.3%, with turnover of 79.9684 million shares, involving HKD330 million.CLSA said in a research report that media reports last Fri (15th) stated Shanghai required offline pharmacies to accept only paper prescriptions issued by hospitals within three days for the purchase of GLP-1 drugs, triggering market concerns that online sales of related drugs could be restricted, leading to share price declines in JD HEALTH (06618.HK) -2.320 (-5.137%) Short selling $160.42M; Ratio 21.399% and ALI HEALTH (00241.HK) -0.150 (-3.538%) Short selling $660.71M; Ratio 40.092% . However, current regulations allow online sales of diabetes drugs, and all GLP-1 drugs fall into this category.The broker noted that online sales of GLP-1 drugs remain unaffected at present, and obtaining prescriptions through online hospitals and purchasing the drugs remain smooth. Both JD HEALTH and ALI HEALTH said they have not observed any changes so far and have not received any instructions from regulators. CLSA believes that even if the relevant restrictions are expanded nationwide, the impact would remain manageable, as GLP-1 drug sales account for a relatively low proportion of online platform sales.Under the most favorable scenario, advertising and promotion of all GLP-1 drugs may need to shift from &#34;weight loss&#34; to &#34;diabetes treatment&#34;, with minimal overall impact on online sales. In a more severe scenario, if online prescription issuance faces tighter restrictions, the impact could be greater but still manageable. Currently, GLP-1 drugs contribute only a low single-digit percentage of JD HEALTH's self-operated sales. The proportion for ALI HEALTH may be relatively higher but still within single-digit percentages.***********************************************************************Nomura said in a research report that recent market concerns over tighter regulation of GLP-1 drug sales represent an overreaction. The report explained that Shanghai tightened GLP-1 drug sales from May 15, requiring presentation of a hospital-issued paper prescription (valid for three days) when purchasing at offline retail pharmacies. The new measure coincided with the formal implementation of the updated Regulation on the Implementation of the Drug Administration Law by the National Medical Products Administration (NMPA), raising concerns about potential restrictions on online sales of GLP-1 drugs.The broker pointed out that although the updated regulation added additional provisions on online drug sales, it mainly strengthens the existing regulatory framework rather than introducing new restrictions. Importantly, the scope of drugs prohibited from online sales remains consistent with previous regulations. According to the &#34;Negative List for Online Drug Sales (First Edition)&#34; issued by the NMPA in November 2022, injectable diabetes drugs are explicitly exempted from the online sales ban. Therefore, GLP-1 drugs indicated for diabetes or hyperglycemia with overweight conditions can still be legally sold online with valid prescriptions. Nomura's channel checks also confirmed that online sales of such drugs remain unaffected.Nomura estimates that GLP-1 drug sales account for only a low single-digit percentage of JD HEALTH's product sales. Even if stricter enforcement prompts operational adjustments by online platforms, the financial impact on JD HEALTH should be manageable. Potential operational adjustments include ceasing direct promotion of GLP-1 drugs for &#34;weight loss&#34; purposes and strengthening electronic prescription review processes. The broker maintained a Buy rating on JD HEALTH with a TP of HKD67. (ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-15 16:25.)</div></div>

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JD HEALTH and ALI HEALTH shares fell 3%-5% following concerns over new GLP-1 drug sales regulations in Shanghai. CLSA noted that online sales remain unaffected and the impact of potential restrictions would be manageable, as GLP-1 drugs constitute a low percentage of sales. Nomura echoed this sentiment, stating market reactions were overblown and maintaining a Buy rating on JD HEALTH with a target price of HKD67.

- JD HEALTH and ALI HEALTH experienced stock declines due to market concerns over new regulations requiring paper prescriptions for GLP-1 drugs in Shanghai.  
- Despite these concerns, current regulations still permit online sales of diabetes drugs, and both companies reported no operational changes or regulatory instructions.  
- Analysts believe that even if restrictions expand, the financial impact will be manageable, as GLP-1 drug sales represent a low single-digit percentage of overall sales for both firms.

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ALI HEALTH  and JD HEALTH Drop 3%-5% as CLSA Says Impact from GLP-1 Online Sales Restrictions Limited; Nomura: Market Overreacted