In a report, CLSA noted that Wuxi Bio (02269.HK) and Wuxi XDC (02268.HK) fell approximately 7% and 8%, respectively, on Thursday (26th), while CRO/CDMO companies listed in Hong Kong collectively declined by about 2% to 9%. The firm believes this decline was not driven by fundamentals but more likely dominated by position adjustments and capital flow dynamics.
The report stated that the current pullback represents technical/short-term volatility rather than deterioration in demand or execution capabilities. During a market window period lacking catalysts, leading companies in the sector may still experience oversold conditions, creating a more attractive entry opportunity for investors with a 3- to 12-month investment horizon.
