[ET Net News Agency, 13 January 2026] A strong rally in the Hong Kong stock market has
continued to attract capital, with main board turnover reaching HKD 192 billion by midday.
Riding the momentum of gains in US-listed Chinese stocks, the Hang Seng Index surged more
than 500 points in early trading to reach 27,143, marking a new two-month high. The
biotechnology sector was particularly robust, though profit-taking in technology stocks
narrowed gains by midday. The HSI ended the morning session at 26,877, up 268 points or 1
per cent. The Hang Seng China Enterprises Index rose 73 points or 0.8 per cent to 9,293,
while the Hang Seng Tech Index added 22 points or 0.4 per cent to 5,885.

"Mak Ka Ka: Hong Kong stocks to focus on domestic demand and AI themes this quarter"

While AI stocks' gains were capped in the morning, financial and pharmaceutical shares
took the lead in supporting the market, keeping the HSI up by more than 200 points. Mak Ka
Ka, Head of Financial Products Trading and Research Department of SinoPac Securities
(Asia), told ET Net News Agency that both Hong Kong and A-share markets have shown
strength in tandem recently. Short-term weakness in the renminbi has also encouraged
foreign capital inflows, supporting the technical picture. She expects the HSI to
consolidate around 27,000 in the near term, with a trading range between 26,800 and
27,300.
Mak believes that this period of consolidation can help build momentum for the next leg
up, but further gains will depend on expectations for additional policy support and the
direction of the renminbi. She noted that the recent rally has been partly driven by
market anticipation of follow-up measures after last month's Central Economic Work
Conference, with positioning for the upcoming Third Plenum in March. This year marks the
start of the 15th Five-Year Plan, and Mak expects more detailed policies to be rolled out,
particularly in AI and domestic demand - two areas highlighted by the conference and
likely to be the main economic and policy focus this quarter.

"WuXi AppTec's profit growth largely from disposals"

WuXi AppTec (02359) issued a positive profit alert, projecting last year's net profit to
double to RMB 19.15 billion, though revenue only grew about 16 per cent to RMB 45.456
billion. The profit alert noted that a large portion of earnings was generated from
reducing its stake in WuXi XDC (02268) and selling equity in subsidiaries such as Kangde
Hongyi and Medkey. Despite this, WuXi AppTec surged nearly 8 per cent by midday, making it
the morning's top blue-chip performer. Mak pointed out that much of WuXi AppTec's profit
growth stems from asset disposals, and that valuations should be based on sustainable
operations. Last year's CRDMO business delivered only moderate performance, and there is
still significant room for margin improvement. Overall, Mak sees the outlook as neutral
rather than strongly positive, but with active money flowing into pharmaceuticals, she
expects the share price could reach HKD 128 in the short term.
Mak emphasised that WuXi and the broader pharmaceutical sector face persistent risks.
Even discounting the risk of US sanctions, the sector's financing environment is often
volatile. US policy changes and interest rate movements affect fundraising for innovative
drug projects, making growth trends in the WuXi group prone to swings. Although the latest
US National Defense Authorization Act (NDAA) and Biosafety Act have eased pressure on
Chinese pharma, policy risk remains. Mak cautioned that the ever-changing nature of
US-China relations continues to weigh on sentiment toward pharma names, posing an
unpredictable long-term headwind for the WuXi group.

"WuXi Bio has stronger fundamentals, poised to outperform WuXi AppTec with HKD 48 target"

Mak also acknowledged the solid fundamentals of the WuXi group, especially WuXi Bio
(02269), which recently signalled robust results with double-digit growth in both revenue
and profit last year. The company added a record 209 new projects, about half of which
came from the US, demonstrating strong growth even amid headwinds. Mak expects WuXi Bio'
unique integrated CRDMO business, together with its dual-antibody and ADC projects, to
drive high revenue and profit growth this year. Several of WuXi Bio' projects are already
in phase III clinical trials, with a high chance of commercialisation this year, adding
further momentum. Benefiting from capital inflows, Mak is bullish on WuXi Bio in the short
to medium term and sees a target price of HKD 48 as achievable.