In the morning session, the A-share innovative drug concept surged, with Ruizhi Pharmaceutical (core stock) hitting the 20% daily limit, and stocks such as Bayi Shikong, Saiseng Pharmaceutical, Shutaishen, Guangdong Wanniangqing, Jinshi Yayao, Dezhan Health, Xinhua Pharmaceutical, Hainan Haiyao, Asia-Pacific Pharmaceutical, Jinyao Pharmaceutical, Haixin Co., Ltd., Asia-Pacific Group, and Shuanglu Pharmaceutical also reaching the daily limit. The Hong Kong pharmaceutical sector mostly rose, with Shandong Xinhua Pharmaceutical Co., Ltd. up over 21%, Haipru up over 11%, and Yingsi Intelligent up over 6%.

The market's speculation logic revolves around multiple positive resonances: first, the valuation of the pharmaceutical (core stock) industry is at a low level, with listed companies intensively repurchasing and increasing holdings, releasing a clear bottom value signal; second, the policy side is expanding foreign investment openness, bringing new vitality and cooperation opportunities to the industry; third, the international pharmaceutical grand event highlights the global competitiveness of China's innovative drugs and CXO field; fourth, leading enterprises are upgrading channel cooperation, driving overall efficiency improvement in the industry chain.

On the news front, on June 22, the Ministry of Commerce, the National Development and Reform Commission, and the Ministry of Finance jointly issued the "Action Plan for Stabilizing and Optimizing Foreign Investment Utilization," marking a new breakthrough in the openness of the pharmaceutical (core stock) field. It clearly states that it will expedite the research and issuance of detailed rules for segmented production of drugs, facilitate overseas drug marketing authorization holders to carry out cross-border segmented production of biological products and chemical drugs, and expand the pilot areas for opening up in the fields of biotechnology and wholly foreign-owned hospitals, supporting insurance companies to include more innovative drugs and devices in commercial insurance coverage.

Recently, SINOPHARM and HWHG (core stock) reached a strategic cooperation focusing on channel upgrades, terminal refinement, and logistics collaboration, accelerating the creation of an integrated health service system for all scenarios, helping quality drugs penetrate deeper into the market. The global biotechnology event BIO2026 will be held from June 22 to 25 in San Diego, USA, gathering over 20,000 industry participants worldwide, covering cutting-edge fields such as artificial intelligence and digital health, as well as cell and gene therapy, with the high efficiency advantages of Chinese CXO companies receiving significant attention.

In addition, since the second quarter of this year, over a hundred pharmaceutical (core stock) A-share or H-share listed companies have disclosed repurchase or shareholding increase plans. China Biopharmaceutical plans to use no more than HKD 2 billion to repurchase shares, conveying strong confidence in the company's value.

Related Industries:

Innovative drugs and biological products: With the implementation of foreign investment openness policies, opportunities for cross-border production cooperation for overseas pharmaceutical companies have significantly increased. Coupled with the focus on cutting-edge therapies at the BIO2026 conference, the commercialization process of innovative drug companies' R&D achievements is expected to accelerate. At the same time, the intensive repurchase and increase behavior in the industry continues to repair the market's pessimistic expectations for the sector's valuation, and companies with core R&D capabilities and pipeline reserves will be the first to benefit from the industry's recovery wave.

Pharmaceutical (core stock) commercial and channel services: The strategic cooperation between SINOPHARM and HWHG sets a benchmark for channel upgrades in the industry, promoting pharmaceutical distribution companies to transform into all-scenario health services. Against the backdrop of foreign investment openness, new demands will emerge in areas such as cross-border drug distribution and foreign-funded hospital cooperation, and commercial enterprises with a complete network layout and efficient supply chain management capabilities will welcome development opportunities to expand their business boundaries CXO (Pharmaceutical (Core Stock) R&D Outsourcing): At the BIO2026 conference, the high efficiency advantages of Chinese CXO companies were recognized globally, further opening up the space for overseas orders. Currently, the R&D of innovative drugs continues to heat up, with the R&D demands of domestic and foreign pharmaceutical companies growing in tandem, which will drive the capacity utilization and performance of CXO companies to steadily improve. The international layout and technological accumulation of leading enterprises will strengthen long-term competitive barriers.

Pharmaceutical (Core Stock) Packaging: With the expansion of drug production scale and the rapid promotion of innovative drugs and devices, the demand for pharmaceutical packaging continues to grow, especially the high-end demand for Class I pharmaceutical packaging shows a significant upward trend. Some companies' newly invested projects are gradually being put into production, and after the release of new capacity, they will precisely match market demand. Packaging companies with technological advantages and capacity reserves will fully share the industry's growth dividends.

Industry Chain Companies:

China Biopharmaceutical: A leading comprehensive pharmaceutical company in China, plans to use no more than HKD 2 billion to repurchase common shares within the next 12 months, demonstrating confidence in the company's intrinsic value. The company has a well-established layout in innovative drug R&D and commercialization, accelerating the internationalization process of innovative drugs through BD cooperation, and is expected to fully benefit from industry recovery and favorable policies.

Hua Medicine (Core Stock): A leading domestic producer of narcotic and psychotropic drugs, recently reached a strategic cooperation with SINOPHARM, leveraging SINOPHARM's national channel resources to accelerate the penetration of quality drugs, promote terminal cultivation and logistics collaboration, further consolidating its leading position in the field of narcotic and psychotropic drugs, while expanding its full-scenario health service layout.

WuXi AppTec: A global leader in the CXO industry, with service capabilities covering the entire drug R&D process, highlighting the high efficiency advantages of Chinese CXOs at the BIO2026 conference, with continued growth in overseas customer demand. This year, the company has implemented multiple repurchases, conveying bottom value signals, and its international layout and capacity expansion will provide strong support for long-term performance growth (Core Stock).

Guangyu Yuan: A traditional Chinese medicine (Core Stock) company with a deep historical background, its core products have high brand recognition and market acceptance. Against the backdrop of an overall recovery in the pharmaceutical (Core Stock) sector, the company benefits from consumption upgrades and supportive policies for traditional Chinese medicine, with intraday gains exceeding 3%, significantly increasing market attention.

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