The CXO concept stocks led the gains. Wuxi XDC (02268) surged 7.97% to HKD 63; Wuxi Bio (02269) rose 4.7% to HKD 40.08; Wuxi Apptec (02359) climbed 2.28% to HKD 19.7; and ChemPartner (03759) also gained 2.28% to HKD 19.7.
According to Zhitong Finance APP, CXO concept stocks ranked among the top gainers. Wuxi XDC (02268) rose by 7.97% to HKD 63; Wuxi Bio (02269) increased by 4.7% to HKD 40.08; Wuxi Apptec (02359) climbed by 2.28% to HKD 19.7; and Canbridge Pharma (03759) also gained 2.28% to HKD 19.7.
In a research report, CLSA noted that with the continuous advancement of AI technology, investors' recent focus has shifted from AI-enabled industries to AI replacing intermediaries. It is expected that AI will have a clearer positive impact on Comprehensive Research, Development, and Manufacturing Organizations (CRDMOs), while in contrast, pharmaceutical companies accelerating internal adoption of AI may result in mixed impacts on specialized Contract Research Organizations (CROs). Currently, Contract Development and Manufacturing Organizations (CDMOs) are preferred as they are expected to outperform CROs in profitability visibility due to better capacity-locking capabilities and longer-term projects.
The brokerage also pointed out that the sector's decline on Thursday was not driven by fundamentals but was more likely dominated by position adjustments and capital flows. The current pullback is technical/short-term volatility rather than caused by deteriorating demand or execution issues. During market windows lacking catalysts, industry leaders may still experience oversold conditions, which would create more attractive entry opportunities for investors with a holding period of 3 to 12 months.
