Hong Kong stocks in the Biomedical sector all fell sharply, as of the time of writing, $WUXI XDC (02268.HK)$ down more than 11%, $BEIGENE (06160.HK)$ down more than 10%,$WUXI BIO (02269.HK)$、$WUXI APPTEC (02359.HK)$、$AKESO (09926.HK)$，$TIGERMED (03347.HK)$、$JUNSHI BIO (01877.HK)$And others fell as well.

On the news front, U.S. President Trump delivered a speech on April 8, stating that the USA would impose tariffs on pharmaceuticals. Trump believes that once tariffs are imposed on pharmaceuticals, pharmaceutical companies will open factories in the USA, as it is the "largest market." Additionally, according to media reports, on April 8, the U.S. National Security Council released a complete report titled "Rapid Action to Protect U.S. National Security in Emerging Biotechnology."

Xiangcai Securities pointed out that many companies involved in laboratory R&D outsourcing related to Medical Services have significant business in the USA market, so the pharmaceutical outsourcing industry may be disturbed in the short term by the sentiment impact of mutual tariff increases. However, from an Industry Chain perspective, domestic pharmaceutical outsourcing service companies have become an important part of the Global pharmaceutical Industry Chain, allowing large American pharmaceutical companies to enhance R&D efficiency by focusing more on downstream pharmaceutical R&D and manufacturing, thereby providing support for pharmaceutical industrial production and value creation. Therefore, it is believed that the tariffs' impact on the fundamentals of the CXO sector is expected to be controllable, and it is recommended to seize the allocation opportunities brought about by the sector's decline.

Editor/rice