According to Bloomberg News, on September 12, US President Biden signed an executive order to launch the National Biotechnology and Biomanufacturing Initiative to reduce the dependence of the United States on foreign countries (including China). In the secondary market, CRO-related stocks have become another sector that has plummeted under the influence of American policies after chip semiconductors.
Wuxi pharmatech (603259. SH，02359。 HK), a biomedical bull stock in the previous two years, led the decline today. Both A shares and Hong Kong stocks plummeted: A shares closed at the daily limit, down 10% to 76.35 yuan; Hong Kong stocks fell 16.82% to HK$ 68.75. Both hit a new low in 19 months. The market value of the once 500 billion Big Mac was only 200 billion, down more than 50%. Fundamentally, Wuxi PharmaTech's interim net profit reached 4.6 billion, up 73% year-on-year.
In addition, after-hours data showed that institutional seats sold 65.438+0.56 billion, and Shanghai Stock Connect sold 569 million. In addition to fundamental changes, what is more important is the serious lack of market confidence. The one-and-a-half-year decline is not a short-term behavior, but a strong willingness to avoid risks behind it. Afraid of being big? And then what? It's safe to put down your bag? It has become the first choice for many medium and long-term funds in a turbulent environment.
Summary: Many CRO companies in China contract out services, and their performance contribution mainly comes from abroad. If Biden suddenly disconnects or something, the CRO plate will have a great influence on the future of CRO, regardless of the main force. Cut first, and then several leading companies led by CRO will fall 14%. Wuxi pharmatech fell 10CM (Hong Kong stocks fell 15CM), Gloria Ying fell 10CM (Hong Kong stocks fell 12CM), Jiuzhou Pharmaceutical fell 9CM, and Boteng shares fell 9CM, all of which were big drops in volume and energy. Under the cover of the nest, there are no eggs. Please think twice if you want to copy the bottom.