The Zhitong Finance App learned that innovative drug concept stocks have declined across the board. As of press release, Pharmaceutical Junuo B (02126) fell 9.35% to HK$2.665; Rongchang Biotech (09995) fell 7.11% to HK$73.2; Conoa-B (02162) fell 5.10% to HK$74.5; and Nuocheng Jianhua (09969) fell 4.57% to HK$15.03.
According to the news, Federal Reserve Governor Michael Barr said on Wednesday that in order to suppress stubborn inflation, the Federal Reserve needs to raise interest rates even further. A number of Federal Reserve officials have previously indicated that there is a possibility of further interest rate hikes. CITIC Construction Investment pointed out in its strategic research report that AI, innovative pharmaceuticals, and industrial metals are all interest rate sensitive industries. If the Federal Reserve starts a cycle of interest rate hikes, the fundamentals and valuations of related industries may all be impacted to a certain extent.
Notably, there are recent reports that the US Treasury Department is drafting relevant rules involving investment in Chinese medicine, and most generic drug licenses may still continue to be carried out. SPDB International pointed out that neither the US Treasury Department nor the White House commented on the report, so we regard this news as a marginal change in the direction of regulation rather than the final policy caliber. The bank believes that the risk of Chinese innovative pharmaceutical companies being widely banned or substantially restricted from licensing generic therapeutic drugs to US pharmaceutical companies has declined marginally.