Understanding the Market | CRO Concept Stocks Lead the Gains, WuXi Biologics Rises Over 7%, Pharmaron Increases Nearly 6%
CRO concept stocks performed strongly, with WuXi Biologics rising 7.69% and Pharmaron rising 5.79%. Asymchem had the highest increase, reaching 8.06%. The market was influenced by U.S. tariff policies and expectations of interest rate cuts by the Federal Reserve. Analysts believe that the CRO/CDMO industry is likely to welcome valuation recovery opportunities and recommend paying attention to clinical CRO investment opportunities
According to the Zhitong Finance APP, CRO concept stocks are among the top gainers. As of the time of publication, Asymchem (06821) rose by 8.06% to HKD 73.7; WuXi Biologics (02269) increased by 7.69% to HKD 25.2; Pharmaron (03759) went up by 5.79% to HKD 14.98; and WuXi AppTec (02359) climbed by 3.77% to HKD 68.85.
In terms of news, on May 28 local time, a U.S. federal court blocked the tariff policy announced by President Trump on "Liberation Day" on April 2, ruling that Trump had overstepped his authority. Notably, on the 22nd, Federal Reserve Governor Christopher Waller mentioned in an interview that if the tariffs imposed by the U.S. government on trade partners remain at around 10%, the Federal Reserve may start to cut interest rates in the second half of 2025.
Zhongtai Securities previously pointed out that since 2024, while there have been fluctuations in overseas CPI monthly data, overseas markets are expected to gradually enter a rate-cutting cycle, and expectations for improvements in investment and financing are likely to marginally improve. It is anticipated that integrated CRO/CDMO primarily focused on overseas revenue and domestic preclinical CROs are likely to welcome valuation recovery opportunities; the CRO sector has been significantly affected by domestic and foreign investment and financing environments and adverse factors, but as domestic policies gradually take effect, the sector is expected to gradually recover, with continued attention on clinical CRO investment opportunities
