{Economic Information Daily, 16th} Although the U.S. Producer Price Index (PPI) for September accelerated month-on-month, adding pressure on the Fed to raise interest rates, overnight European and U.S. stock markets rebounded. Asian-Pacific markets followed suit this morning, with the Hang Seng Index opening over 200 points higher and rising over 300 points at one point, driven by technology stocks. However, slight net outflow of northbound funds narrowed the gains slightly. The index closed at 24,353 in the morning session, up 290 points or 1.2%, with main board turnover exceeding HK$92.8 billion. The Hang Seng China Enterprises Index stood at 8,191, up 88 points or 1.1%. The Hang Seng Tech Index reached 4,145, up 84 points or 2.1%.
*Chan Ching Sum: AI financing fears will continue to test the market repeatedly*
Cloud service provider CoreWeave plunged 9.5% intraday Thursday amid debt concerns and fears of an AI financing bubble. Later, NVIDIA CEO Jensen Huang reassured the market, stating the company's strength is growing and it does not need assistance, sparking a sharp rebound and closing up 5.9%. U.S. and Asian-Pacific markets also benefited from the rebound, with Hong Kong stocks following the external recovery, rising over 300 points at one point. However, Eddie Chan, Executive Director at AID Financial, told Economic Information Daily that the market rebound does not mean panic sentiment has been fully digested. He noted significant resistance remains above the Hang Seng Index at the 20-day moving average (around 24,425 points). Regarding whether the short-term breakout is possible, he frankly said observation remains the priority, pointing out insufficient market turnover and RSI below 50, indicating a lack of upward momentum. If the market successfully recovers above the 20-day line, the next target could be the 50-day line (around 24,989 points), though this would be a more optimistic scenario. He added that AMD continued to fall overnight, and market concerns over financing and profitability prospects for AI startups persist, which will repeatedly test the market. On the downside, 23,800 points serves as the initial support level for the Hang Seng Index.
*Chan Ching Sum: Prefers WuXi Biologics, bullish on rise to HK$80*
The National Healthcare Security Administration and the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council held meetings on October 13 and 14 respectively, supporting pharmaceutical innovation. The Party Committee of SASAC explicitly stated the need to strengthen the core functions of the health industry and leverage the leading role of state-owned capital. The meeting required guidance and promotion for relevant central enterprises to strengthen pharmaceutical innovation, high-end medical equipment, and supplies for public health emergency response, accelerate core technology breakthroughs and commercialization of results, and promote innovation in product supply and service models to help build a modern pharmaceutical industry.
The National Healthcare Security Administration convened a meeting on the 13th, proposing active support for medical technology innovation and focusing on exploring the establishment of a 'pre-establishment system for medical service pricing'. This mechanism aims to shorten the access cycle for innovative drugs and devices from approval to clinical application, supporting more new medical technologies and products to achieve rapid clinical scale application, thus clearing bottlenecks for commercialization and volume expansion of innovative products from the payment and access mechanisms.
Chan Ching Sum stated that the biotech sector, backed by China's comprehensive biotech supply chain and a highly mature CRO/CDMO layout, inherently attracts medium-to-long-term capital. The sector's prior consolidation at higher levels is nearly complete—for example, leading stock WuXi Biologics (02269) has shown clear support at the 50-day moving average (around HK$50.375). Therefore, under policy tailwinds from SASAC and the National Healthcare Security Administration, the stock price has gained momentum. For the sector, these policies are merely 'icing on the cake'.
Regarding the National Healthcare Security Administration's proposal to explore the 'pre-establishment system for medical service pricing', Chan believes that although the market needs time to model its actual financial impact, the news is undoubtedly positive, clearly signaling policy determination to support R&D and commercialization processes, thereby driving stock prices upward.
Additionally, the Party Committee of SASAC explicitly emphasized leveraging the leading role of state-owned capital. Should investors follow the 'national team' in their stock selection strategy? Chan pointed out that although state-owned and central enterprises are relatively stable and benefit more from policies, they often bear national missions and exhibit slower stock price movements. In contrast, leading biotech stocks and high-volatility stocks typically carry both higher risks and returns. Investors should select stocks according to their own risk tolerance.
Within the biotech sector, he prefers industry leader WuXi Biologics, primarily due to its most mature supply chain. He noted that the stock previously rebounded from a low of HK$28 to HK$58. Although the current price faces significant short-term resistance at HK$58, if accumulated at current levels, the long-term target price could reach HK$80. (nw)
*Chan Ching Sum: AI financing fears will continue to test the market repeatedly*
Cloud service provider CoreWeave plunged 9.5% intraday Thursday amid debt concerns and fears of an AI financing bubble. Later, NVIDIA CEO Jensen Huang reassured the market, stating the company's strength is growing and it does not need assistance, sparking a sharp rebound and closing up 5.9%. U.S. and Asian-Pacific markets also benefited from the rebound, with Hong Kong stocks following the external recovery, rising over 300 points at one point. However, Eddie Chan, Executive Director at AID Financial, told Economic Information Daily that the market rebound does not mean panic sentiment has been fully digested. He noted significant resistance remains above the Hang Seng Index at the 20-day moving average (around 24,425 points). Regarding whether the short-term breakout is possible, he frankly said observation remains the priority, pointing out insufficient market turnover and RSI below 50, indicating a lack of upward momentum. If the market successfully recovers above the 20-day line, the next target could be the 50-day line (around 24,989 points), though this would be a more optimistic scenario. He added that AMD continued to fall overnight, and market concerns over financing and profitability prospects for AI startups persist, which will repeatedly test the market. On the downside, 23,800 points serves as the initial support level for the Hang Seng Index.
*Chan Ching Sum: Prefers WuXi Biologics, bullish on rise to HK$80*
The National Healthcare Security Administration and the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council held meetings on October 13 and 14 respectively, supporting pharmaceutical innovation. The Party Committee of SASAC explicitly stated the need to strengthen the core functions of the health industry and leverage the leading role of state-owned capital. The meeting required guidance and promotion for relevant central enterprises to strengthen pharmaceutical innovation, high-end medical equipment, and supplies for public health emergency response, accelerate core technology breakthroughs and commercialization of results, and promote innovation in product supply and service models to help build a modern pharmaceutical industry.
The National Healthcare Security Administration convened a meeting on the 13th, proposing active support for medical technology innovation and focusing on exploring the establishment of a 'pre-establishment system for medical service pricing'. This mechanism aims to shorten the access cycle for innovative drugs and devices from approval to clinical application, supporting more new medical technologies and products to achieve rapid clinical scale application, thus clearing bottlenecks for commercialization and volume expansion of innovative products from the payment and access mechanisms.
Chan Ching Sum stated that the biotech sector, backed by China's comprehensive biotech supply chain and a highly mature CRO/CDMO layout, inherently attracts medium-to-long-term capital. The sector's prior consolidation at higher levels is nearly complete—for example, leading stock WuXi Biologics (02269) has shown clear support at the 50-day moving average (around HK$50.375). Therefore, under policy tailwinds from SASAC and the National Healthcare Security Administration, the stock price has gained momentum. For the sector, these policies are merely 'icing on the cake'.
Regarding the National Healthcare Security Administration's proposal to explore the 'pre-establishment system for medical service pricing', Chan believes that although the market needs time to model its actual financial impact, the news is undoubtedly positive, clearly signaling policy determination to support R&D and commercialization processes, thereby driving stock prices upward.
Additionally, the Party Committee of SASAC explicitly emphasized leveraging the leading role of state-owned capital. Should investors follow the 'national team' in their stock selection strategy? Chan pointed out that although state-owned and central enterprises are relatively stable and benefit more from policies, they often bear national missions and exhibit slower stock price movements. In contrast, leading biotech stocks and high-volatility stocks typically carry both higher risks and returns. Investors should select stocks according to their own risk tolerance.
Within the biotech sector, he prefers industry leader WuXi Biologics, primarily due to its most mature supply chain. He noted that the stock previously rebounded from a low of HK$28 to HK$58. Although the current price faces significant short-term resistance at HK$58, if accumulated at current levels, the long-term target price could reach HK$80. (nw)
