• Guotai Asset Management flagged a sharp rebound in China’s innovative drug equities, led by key onshore, Hong Kong-listed biotech benchmarks.
• Overseas liquidity support drove the move, citing a U.S. Treasury plan to at least double long-dated coupon buyback operations to USD 4 billion.
• Falling U.S. yields lifted biotech duration, with the SPDR S&P Biotech ETF (XBI) up 5.91% to a record.
• Merck, Moderna reported positive Phase III data on 2026-08-19 for mRNA cancer vaccine Intismeran Autogene with Keytruda in resected melanoma.
• AI drug discovery remained a near-term catalyst, with Guotai pointing to potential upside for protein CROs despite elevated volatility risks.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Guotai Asset Management Co. Ltd. published the original content used to generate this news brief on August 20, 2026, and is solely responsible for the information contained therein.